Asian Shares Decline Amid Profit Booking

(RTTNews) - Asian stocks fell broadly on Friday as investors booked some profits in the technology sector following warnings of stretched valuations.

The International Monetary Fund (IMF) and the Bank of England (BOE) have both cautioned about the potential for a collapse mirroring the dotcom bubble.

Chinese markets ended lower amid intensifying trade tensions with the United States.

The benchmark Shanghai Composite index fell 0.94 percent to 3,897.03 as China imposed broad restrictions on rare earth exports and the Trump administration proposed banning Chinese airlines from flying over Russia on U.S. routes. Hong Kong's Hang Seng index slumped 1.73 percent to 26,290.32.

Japanese markets fell sharply on concerns of a potential bubble in AI-linked tech space and amid worries about whether Takaichi can successfully secure coalition partners.

The Nikkei average tumbled 1.01 percent to 48,088.80, heading into a three-day weekend. The broader Topix index settled 1.85 percent lower at 3,197.59.

SoftBank Group lost 3.1 percent and Tokyo Electron dropped 1.4 percent while Fast Retailing jumped 6.7 percent after posting a record high profit for the year ended August.

The yen held steady but was set for its biggest weekly loss in a year to due fiscal concerns.

Japanese wholesale prices rose 2.7 percent in the year to September, and most households expect prices to keep rising a year from now, Bank of Japan data showed today.

Seoul markets bucked the regional weak trend to renew their record high levels as traders returned from a seven-day Chuseok holiday. The Kospi average jumped 1.73 percent to 3,610.60, surpassing the landmark 3,600 line for the first time.

Samsung Electronics surged 6.1 percent after it reportedly moved to revive its partnerships with U.S. chipmakers Qualcomm and Intel. SK Hynix shares soared 8.2 percent.

Australian markets ended slightly lower, with mining and gold stocks underperforming triggered by the Gaza peace plan and reports of further price disputes between BHP and China.

The benchmark S&P/ASX 200 dipped 0.13 percent to 8,958.30 while the broader All Ordinaries index closed down 0.13 percent at 9,264.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.76 percent to 13,467.26, dragged mainly by losses in healthcare stocks.

The dollar held near two-month highs in Asian trade as France's political and economic crisis deepened, and the U.S. government shutdown entered its ninth day, with Republicans and Democrats continuing to trade blame over the budget standoff.

Gold was under selling pressure for a second day running due to easing tensions in the Middle East. Likewise, oil extended losses after settling 1.6 percent lower in the previous session.

Overnight, U.S. stocks ended slightly lower after a week of record-breaking gains. Caution crept in as IMF and JPMorgan Chase warned of potential market correction, and the U.S. government shutdown entered its ninth day with no end in sight.

Meanwhile, with three weeks until the Federal Reserve's next policy meeting, New York Federal Reserve President John Williams signaled he would be comfortable cutting rates again.

On the contrary, Fed Governor Michael Barr leaned heavily into the risks of inflation. Fed Chair Jerome Powell provided no new policy updates.

The tech-heavy Nasdaq Composite finished marginally lower, the S&P 500 gave up 0.3 percent and the Dow shed half a percent.