Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff

Asian stock markets closed sharply lower on Friday as investors took profits from this week’s technology-driven rally after Apple Inc.’s decision to raise prices on several products reignited concerns about the sustainability of artificial intelligence-related valuations. The regional decline mirrored weakness on Wall Street, where technology stocks lost momentum despite strong earnings from Micron Technology.

Investor sentiment deteriorated after Apple announced price increases for MacBooks and iPads to offset rising semiconductor costs, raising fears that escalating AI infrastructure expenses could eventually weigh on consumer demand and corporate technology spending. The move overshadowed Micron’s upbeat earnings outlook, which had initially fueled optimism across global chipmakers.

South Korea recorded the steepest losses in Asia, with the KOSPI plunging 5.7%, or more than 500 points. Japan’s Nikkei 225 also suffered heavy selling, dropping 3.9% as traders locked in gains following Thursday’s AI-fueled rally. Nasdaq 100 futures fell roughly 0.8%, while S&P 500 futures slipped 0.4%, signaling continued caution toward technology shares ahead of the quarter’s end.

Major semiconductor companies were among the biggest losers. Samsung Electronics and SK Hynix each declined more than 6% after reports suggested both companies are preparing significant long-term investments to expand semiconductor production capacity. While the announcements underscored confidence in future AI demand, investors chose to secure recent gains following the stocks’ strong advances earlier in the week.

Japan’s SoftBank tumbled approximately 13% after reports indicated OpenAI could postpone its anticipated initial public offering until 2027, delaying a potential catalyst for one of the company’s largest investments.

Economic data also remained in focus. Tokyo’s June inflation figures showed persistent price pressures, with core consumer inflation rising 1.6% year over year and the core-core measure accelerating to 1.1%. The data reinforced expectations that the Bank of Japan may continue tightening monetary policy.

Selling pressure spread across the broader region. Hong Kong’s Hang Seng Index lost around 2%, China’s CSI 300 fell 2.6%, and the Shanghai Composite declined 1.7%. The MSCI Asia ex-Japan Index dropped nearly 2.8%, reflecting widespread weakness in regional equities.

Elsewhere, Australia’s S&P/ASX 200 ended little changed, Singapore’s Straits Times Index fell 0.7%, and Indonesia’s Jakarta Composite slipped 0.4%. Thailand’s SET Index bucked the regional trend with a 0.7% gain, making it one of the few major markets to finish in positive territory. Indian markets remained closed for the Muharram holiday.

Investors also continued assessing the implications of the latest U.S. inflation data, which modestly eased expectations for further Federal Reserve tightening. Meanwhile, Qualcomm’s positive long-term AI revenue outlook provided limited support to the technology sector, although volatility remained elevated. Brent crude oil traded below $75 per barrel, suggesting that concerns over potential supply disruptions in the Middle East continued to ease.