MANILA, Philippines (AP) — Asian stocks on Friday tracked Wall Street’s sharp drop in skittish trading, with the region’s major benchmarks erasing the previous day’s gains.
The future for the S&P 500 was up 0.3% while that for the Dow Jones Industrial Average edged 0.4% higher.
Japan’s Nikkei 225 fell 2.4% to 48,625.88 as worries persist about a bubble in artificial intelligence-related shares. Better than expected U.S. jobs data also raised the likelihood that the Federal Reserve will hold off on an interest rate cut in December, disappointing investors who have been counting on rate cuts to fuel more gains.
The government approved a 21.3 trillion yen ($135 billion) stimulus package that Prime Minister Sanae Takaichi promised as part of efforts to revive the sluggish economy. However, the plans for higher government spending that would delay progress toward trimming down the national debt have put the yen and Japanese government bonds under pressure.
Data on Friday showed the country’s annual inflation rate rose to 3.0% in October 2025 from 2.9% in September.
Japan reported Friday that its exports to the rest of the world rose in October, while those to the U.S. fell. Higher shipments to elsewhere in Asia helped offset the drop in exports to the U.S due to President Donald Trump’s higher tariffs.
South Korea’s KOSPI tumbled 3.8% to 3,853.38, reversing Thursday’s gains. Samsung Electronics sank 5.6%, while SK Hynix plunged 8.6%.
In Chinese markets, Hong Kong’s Hang Seng index skidded 1.8% to 25,380.03 while the Shanghai Composite index slid 2.2% to 3,844.83, with pressure also coming from escalating friction between China and Japan over Taiwan.
Australia’s S&P/ASX 200 fell 1.6% to 8,416.50. Taiwan’s Taiex closed 3.6% down.
“What began as a textbook “Nvidia bounce” flipped into one of the most violent intraday reversals since the April dump, and Asia — ever the obedient understudy — marched directly into the same plunge tank on the open,” Stephen Innes of SPI Asset Management said in a commentary.
On Thursday, jarring swings rocked Wall Street, and U.S. stocks erased a big morning gain to drop as the market remains skittish following weeks of doubts and erratic moves.
The S&P 500 erased early gains to fall 1.6% to 6,538.76, while the Dow Jones Industrial Average dropped 0.8% to 45,752.26. The Nasdaq composite sank 2.2% to 22,078.05.
The sharpest losses again hit what used to be the market’s biggest winners. Nvidia, cryptocurrencies and other areas that had soared with nearly relentless momentum, as traders feared missing out on more gains, forced the market lower. Bitcoin dropped below $87,000, down from nearly $125,000 last month.
