Equity markets fell sharply on Friday as investors pulled back from AI technology stocks that have been best performers this year. Nikkei 225 slid 4%, CSI 300 and Hang Seng fell 2.5% and 1.8%. South Korea markets closed.

The sell‑off was concentrated in technology. Kioxia fell more than 16% and is down more than half from its June peak. TSMC has risen more than 2,000% over the past year. Samsung and SK Hynix, makers of high‑bandwidth memory for Nvidia, are up more than 200% and 500%.

In China AI start‑ups Z.ai and Mini Max dropped 22% and 14% after Moonshot AI debuted a large language model comparable to US labs like Anthropic. The Nasdaq Composite lost 1.5% on Thursday, prompting losses in memory and storage stocks such as Sandisk, Western Digital and Seagate.

Analysts cite geopolitical tensions, rising energy prices and a shift toward less dovish central banks as reasons for profit taking. Richard Yetsenga says, "The uncomfortable reliance on the AI boom is clear." Hedge fund managers report worsening losses amid soaring volatility.