CHENNAI: Asian equity markets traded mixed on Friday morning, with most indices in the red as investors grew cautious over high valuations in technology stocks and weak global cues. The mood across the region was subdued, following a muted close on Wall Street and lingering worries about a potential correction in overheated tech shares.
Hong Kong’s Hang Seng Index fell more than 300 points, or around 1.1 percent, dragged down by weakness in internet and semiconductor stocks. Japan’s Nikkei 225 also slipped nearly 0.9 percent, weighed by losses in major technology and export-oriented firms. In contrast, South Korea’s Kospi gained about 1.3 percent, supported by renewed buying in select chipmakers after recent corrections.
Chinese markets reopened after the Golden Week holiday and traded with limited direction as investors assessed domestic demand trends and awaited fresh policy measures. The Shanghai Composite hovered near flat levels, reflecting a wait-and-watch approach from traders still gauging Beijing’s stance on economic stimulus.
Across the region, market sentiment remained fragile. A stronger U.S. dollar put pressure on Asian currencies, while global investors stayed cautious ahead of upcoming US inflation and jobs data. Analysts said valuations in several Asian technology and growth stocks have become stretched, leading to profit-taking.
Defensive and cyclical sectors such as energy and financials showed relative stability, while high-growth segments like semiconductors and consumer tech faced selling pressure. Overall trading volumes were light, suggesting investors are holding back ahead of key macroeconomic releases.
The near-term outlook for Asian markets remains cautious, with the focus on US economic data, currency movements, and any signs of new stimulus measures from China. Unless a fresh positive trigger emerges, regional equities may continue to trade within a narrow range amid global uncertainty.
