Global shares skid after AI worries send Wall Street tumbling

TOKYO: Global shares tumbled Friday following a broad selloff on Wall Street of shares related to artificial intelligence.

France's CAC 40 shed 1.1 per cent in early trading to 8,117.65, while the German DAX lost 1.5 per cent to 25,919.48. Britain's FTSE 100 fell 1.4 per cent to 10,635.51. US shares were set to trade mixed with Dow futures down 0.8 per cent at 51,192.00. S&P 500 futures rose nearly 0.3 per cent to 7,402.50.

Tokyo's benchmark Nikkei 225 slipped 6.0 per cent to finish at 57,434.77, falling below 60,000 points for the first time in nearly half a year. Japanese technology shares were among the biggest losers, including SoftBank Group Corp. and Advantest Corp.

Australia's S&P/ASX 200 lost 0.5 per cent to 9,020.80. South Korea's Kospi dropped 6.0 per cent to 5,059.69, as shares in Samsung Electronics and SK Hynix plunged. Hong Kong's Hang Seng fell 1.3 per cent to 24,481.86, while the Shanghai Composite dipped 1.1 per cent to 3,649.18.

Stock markets around the world have been feeling pressure from continued declines for companies that have benefited from the boom in the artificial-intelligence technology industry. Critics also say AI stock prices shot too high and were in a bubble. What might come next remains uncertain, they say.

“Of course, the selloff in companies that have so long whetted investors' appetite could create buying opportunities at a discount,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

In Tokyo trading, Toyota Motor Corp.'s stock fell sharply after the Japanese automaker reported lackluster profits the day before.

Thursday was Wall Street's worst day since US President Donald Trump shook markets worldwide in April 2025 with his “Liberation Day” tariffs. The wipeout more than erased the US stock market's gain from the day before, which was its best in three months. AI chip stocks are some of Wall Street's most influential.

In energy trading Friday, benchmark US crude reversed course and dipped 0.99 per cent to USD 89.62 a barrel. Brent crude, the international standard, fell 0.93 per cent to USD 97.38 a barrel. Uncertainty still reigns about what will happen in the war with Iran and when the global energy industry can return to normal.

In currency trading, the US dollar rose to 158.14 Japanese yen from 157.68 yen. The euro cost USD 1.1182, down from USD 1.1219.