Asian stocks today: Markets mostly in red amid tech bubble concerns; HSI down over 300 points, Kospi adds 1.3%
Asian stock markets traded mostly in red on Friday as the week closed, following a mix of positive and worrying developments.In Hong Kong, HSI fell 304 points or 1.14%, reaching 26,447. Shanghai and Shenzhen also traded in red shedding 0.51% and 1.85%, respectively. Japan’s Nikkei was down 470 points or 0.97% at 10:10 AM IST.Meanwhile, Kospi traded in green jumping 49 points or 1.39% to reach 3,598. While news of a Middle East ceasefire and major AI investments lifted sentiment, concerns over a possible US government shutdown and fears of a tech bubble weighed on investors.Markets saw some records this week, with gold and bitcoin also hitting highs. Yet experts warn that some companies may now be overvalued, sparking talk of a market correction.Investor confidence received a boost after ChatGPT-maker OpenAI signed multi-billion-dollar chip deals with South Korea’s Samsung and SK hynix, along with US firm AMD. The deals add to the hundreds of billions already flowing into the artificial intelligence sector, driving stock prices higher. US chip leader Nvidia’s market value soared past $4 trillion.Gold also surged to record levels above $4,000 on Wednesday, as investors sought a safe haven. Adding to market uncertainty, the US government shutdown is expected to enter its third week, with little sign of compromise. Republican Senate Majority Leader John Thune said a weekend session was unlikely, according to Semafor.Donald Trump criticised Democrats over the shutdown at a cabinet meeting. Democrats are reportedly preparing for a shutdown lasting several more weeks if Republicans do not agree to extend healthcare subsidies due to expire on December 31, as per a CNN report.
