BANGKOK — World shares were mostly lower on Friday, with Tokyo’s Nikkei 225 losing 4 per cent as heavy selling of computer chipmakers and other AI-related shares dragged markets lower.
South Korean markets were closed, but shares in Taiwan fell 6.5 per cent a day after its TSMC, the world’s biggest contract manufacturer of computer chips, announced it plans to spend an extra US$100 billion on building fabrication plants in the U.S.
TSMC dropped 7.3 per cent on Friday.
In early European trading, Germany’s DAX dropped 0.3 per cent to 24,841.19 and the CAC 40 in Paris fell 0.4 per cent to 8,346.09. Britain’s FTSE 100 advanced 0.4 per cent to 10,615.71.
The future for the S&P 500 declined 0.8 per cent while that for the Dow Jones Industrial Average was 0.5 per cent lower.
Stocks related to artificial intelligence have been under pressure for weeks because of worries that their prices have shot too high and that voracious demand for computer memory and processors may not be sustainable if AI ends up not producing as much profit and productivity as promised.
Oil prices surged as fighting in the Middle East intensified.
The United States expanded its airstrike campaign against Iran early Friday by hitting more bridges and collapsing a tower at a key Iranian port, part of U.S. President Donald Trump’s threats to start striking infrastructure to pressure Tehran to ease its chokehold on the Strait of Hormuz.
In other Asian trading, the Nikkei lost 4 per cent to 64,141.12, at times trading near its lowest level in over a month, as shares in computer chip equipment maker Tokyo Electron sank 8.2 per cent. Chip testing equipment maker Advantest tumbled 7.2 per cent.
SoftBank Group shed 9 per cent.
The Hang Seng in Hong Kong gave up 2 per cent to 24,505.38, while the Shanghai Composite index lost 3.1 per cent to 3,764.15, dipping to its lowest level in nearly 11 months.
In Australia, the S&P/ASX 200 declined 0.5 per cent to 8,796.70.
“Now investors are taking profits from the first-half winners and moving toward areas that were left behind,” Stephen Innes, of SPI Asset Management, said in a commentary.
On Thursday, the S&P 500 fell 0.5 per cent even though nearly three out of every four stocks in the index rose after more of the country’s biggest companies reported better earnings for the latest quarter than analysts expected.
The Dow Jones Industrial Average dipped 0.2 per cent, and the Nasdaq composite lost 1.5 per cent.
Nvidia fell 2.4 per cent, making it the heaviest weight on the index. Other stocks that have benefited from strong demand for AI also sank, giving back some of their stellar gains.
Micron Technology fell 5.6 per cent to shave its gain for the year so far below 199 per cent. SanDisk fell 12.6 per cent but is nevertheless up 494 per cent for the year. Western Digital sank 9.2 per cent but is still up 171 per cent for the year.
Oil prices are near their highest level in a month because of worries that the war with Iran will keep oil tankers out of the Strait of Hormuz and block shipments of crude from the Persian Gulf to customers worldwide.
The price for a barrel of Brent crude, the international standard, rose 1.1 per cent to $85.13 per barrel. U.S. benchmark crude oil was up 1.3 per cent at $79.95 per barrel.
Reports on the U.S. economy Thursday came in mixed. One said shoppers spent less at U.S. retailers last month than economists expected.
A separate report said fewer U.S. workers applied for unemployment benefits last week, an indication of a solid job market, while a third report said manufacturing in the mid-Atlantic region is better than economists expected.
In other dealings early Friday, the U.S. dollar was nearly unchanged at 162.38 Japanese yen. The euro fell to $1.1440 from $1.1443.
Elaine Kurtenbach, The Associated Press
