In South Korea, the Kospi slid 3.1% in volatile trading, while the small-capitalization Kosdaq index weakened 3.45%. Memory chip leaders Samsung Electronics and SK Hynix fell 2.62% and 3.71%, respectively, extending the global semiconductor retreat.
Australia’s S&P/ASX 200 dropped 0.72%, with local technology and resources shares posting the largest percentage declines. The Hang Seng Index in Hong Kong slipped 1.14%, and the mainland CSI 300 was 0.3% lower, weighed down by softer-than-expected Chinese trade data.
Official figures released Friday showed that China’s exports decreased 1.1% year on year in October when measured in U.S. dollars. Analysts surveyed by Reuters had projected a 3% rise, and the result marked a sharp reversal from the 8.3% jump recorded in September. Imports edged up 1% from a year earlier, undershooting market expectations for 3.2% growth and slowing from September’s 7.4% expansion. Economists attribute the weaker trade picture to subdued domestic demand amid a protracted property downturn, heightened job insecurity and the winding down of consumption-focused stimulus programs. A broad overview of recent Chinese economic indicators is available from the International Monetary Fund.
In India, the Nifty 50 slipped 0.63% and the Sensex eased 0.49%. Telecommunications heavyweight Bharti Airtel was among the biggest decliners after Singapore Telecommunications (Singtel) disclosed the sale of a stake in Airtel worth 1.5 billion Singapore dollars (approximately US$1.15 billion). The transaction lowers Singtel’s interest in Airtel to 27.5% from 28.3%. Singtel said the divestment is part of an asset-recycling program that has now generated S$5.6 billion, surpassing the halfway mark toward its medium-term target of S$9 billion. Singtel shares gained as much as 5.11% to a record intraday high, while Airtel fell as much as 4.34%.
Across the region, investors remained focused on the durability of the recent AI-driven rally and the risk that rising bond yields or earnings disappointments could spur further multiple compression. Although the sector has been a significant driver of equity gains in 2023, several strategists have cautioned that earnings visibility may not be sufficient to justify current price levels, particularly for companies with limited near-term cash flows from AI-related products.
Market participants are also monitoring upcoming macroeconomic releases and central-bank commentary for clues on monetary policy trajectories. Expectations that the U.S. Federal Reserve will keep rates elevated for longer have contributed to a firmer dollar and tighter global financial conditions, adding another layer of pressure to equity valuations.
Later in the global day, attention will turn to additional corporate earnings from the United States as well as consumer sentiment data that could influence risk appetite heading into next week.
Crédito da imagem: Visual China Group via Getty Images
