Technology stocks led the sell-off in Asian equities.

Technology stocks led a sell-off across Asia on the afternoon of November 5th, as investors grew increasingly concerned about an “AI bubble” after this year’s sharp price surge pushed company valuations to record highs.

Refueling a vehicle at a gas station in Quezon, Philippines. Photo: THX/VNA

At the close of trading, the Nikkei 225 index in Tokyo fell 2.5% to 50,212.27 points as shares of technology investment firm SoftBank lost 10% and shares of home appliance manufacturer Sony dropped more than 1%.

In South Korea, Seoul's Kospi index fell 2.85% to close at 4,004.42 points. At one point, the index dropped to a low of 3,867.81 points during the session, retreating back below the 4,200-point mark just two days after reaching that milestone.

In the Chinese market, the indices moved in opposite directions. Specifically, the Hang Seng index in Hong Kong lost 0.7% to close at 25,935.41 points, while the Shanghai Composite index in Shanghai rose 0.2% to 3,969.25 points.

Taipei stocks also fell more than 1%, with shares of chipmaker TSMC losing 3%. Markets in Singapore, Sydney, Manila, and Jakarta also declined, but Wellington and Bangkok edged higher.

Global stocks have surged this year as a massive influx of money poured into AI-related companies, including US giants like Nvidia, Amazon, and Apple, as well as Asian companies like Samsung and Alibaba.

This upward trend was also supported by the easing of US trade tensions and expectations that the Federal Reserve (Fed) would continue cutting interest rates into the new year. However, last week's warning from the Fed that another rate cut in December was not certain shook market sentiment.

Furthermore, despite strong earnings reports in recent quarters, investors have begun to question whether pursuing the "AI craze" is still worthwhile when capital flows are primarily concentrated in a few large companies.

In the domestic market, at the close of trading on November 5th, the VN-Index increased by 2.91 points (0.18%) to 1,654.89 points. The HNX-Index increased by 0.79 points (0.30%) to 266.70 points.

Source: https://baotintuc.vn/thi-truong-tien-te/co-phieu-cong-nghe-dan-dau-da-ban-thao-cua-chung-khoan-chau-a-20251105160509057.htm