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Asian stock markets swung sharply from gains to losses as traders locked in profits after a rally driven by strong earnings from US chipmaker Micron Technology. The Nikkei 225 fell 4.5% and the Kospi plunged 6.8% on Friday, after both had surged earlier in the week on Micron's better-than-expected results Source: AP News.
On Thursday, Tokyo's Nikkei rose 2.31% and Seoul's Kospi soared 5.65% after Micron reported quarterly revenue that quadrupled year-on-year and forecast around US$50 billion for the current quarter Source: Channel NewsAsia. The rally was fueled by hopes that the artificial intelligence boom would sustain demand for memory chips.
Friday saw a sharp reversal. Stephen Innes of SPI Asset Management noted that “a strong Micron print can produce a powerful upside chase one day; a new concern around memory costs, capex, or the durability of AI demand can reverse it violently the next” Source: AP News. Technology giants led the decline: SoftBank lost 13.4%, Advantest sank 10.8%, and Samsung Electronics dropped 7% Source: AP News. Apple shares also fell 6.1% after the company hiked product prices Source: AP News.
Not all markets declined. Australia's S&P/ASX 200 gained 0.2% Source: AP News. In the US, the S&P 500 finished nearly unchanged, with some industrial stocks like Caterpillar surging 6.3% Source: Channel NewsAsia. Briefing.com described the outcome as "divergent tech performance," noting gains were "continuing to broaden" to other sectors Source: Channel NewsAsia.
“Shares plunged Friday in Asia, led by heavy losses in Japan and South Korea as traders sold to lock in gains from recent rallies in stocks related to artificial intelligence.”
“Tokyo's Nikkei 225 was up 2.31 per cent at around 8.30am, while Seoul's benchmark Kospi index soared 5.65 per cent.”
“Tokyo's Nikkei 225 index shed 4.5% to 69,127.10 and the Kospi in Seoul plunged 6.8% to 8,323.52.”
““A strong Micron print can produce a powerful upside chase one day; a new concern around memory costs, capex, or the durability of AI demand can reverse it violently the next,” Stephen Innes of SPI Asset Management said in a commentary.”
“Briefing.com described the outcome as "divergent tech performance," adding that the gains "continue to broaden" to other sectors.”