Asian markets were trading mixed on Friday, the last trading session of the week, as investors remained cautious ahead of the Bank of Japan’s (BoJ) monetary policy decision.
Meanwhile, Reuters reported that the BoJ is expected to keep interest rates unchanged on Friday but reiterate its focus on preventing underlying inflation from overshooting its 2% target. This could signal the possibility of further monetary tightening as early as December.
At its September policy meeting, the Japanese central bank raised its key short-term interest rate by 25 basis points to 1.25% in a 7-2 vote, taking borrowing costs to their highest level since April 1995.
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Among regional indices, Japan’s Nikkei 225 fell over 2%, while the broader Topix index edged 0.65% lower. South Korea’s Kospi plunged 4%. In contrast, New Zealand’s NZX 50 rose 0.33%, while Australia’s ASX 200 gained 1.02%.
Asian Technology Stocks Slide On US Earnings Concerns
Asian technology stocks came under pressure on Friday, as disappointing earnings from some US technology companies and concerns over a $5.7 billion security breach at cryptocurrency exchange Binance weighed on investor sentiment.
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In Japan, SoftBank Group shares dropped 4.66%, while chip equipment makers Tokyo Electron and Advantest declined 3.93% and 5.43%, respectively.
In South Korea, SK Hynix tumbled 6.36%, while Samsung Electronics slipped 3.45%.
Technology stocks have witnessed heightened volatility in recent sessions, with South Korea’s semiconductor-heavy market swinging between sharp losses and record gains.
US Markets End Lower; Nasdaq Drops 1.38%
Overnight, US equity benchmarks ended lower, with technology stocks leading the decline.
The Dow Jones Industrial Average settled 0.25% lower, while the S&P 500 declined 0.30%. The Nasdaq Composite fell 1.38%.
Alphabet shares plunged around 12% after the company missed third-quarter earnings and revenue estimates and reported negative free cash flow of $9.07 billion, adding to concerns over the outlook for US technology stocks.
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