Most Asian stock exchanges closed lower on Friday, with losses concentrated in technology names after overnight weakness in U.S. markets. The regional sell-off came even as one major chipmaker reported stronger-than-expected earnings, a result that failed to buoy the broader tech complex.
In U.S. trading on Thursday, NVIDIA Corporation (NVDA) reported earnings that beat expectations, yet the stock fell 5.5%. That weakness carried over into Asian trading; Nasdaq 100 futures were down about 0.3% in the region.
South Korea - KOSPI eases from records but posts hefty monthly gains
South Korea's benchmark KOSPI declined as much as 2% from recent record levels on Friday, dragged lower by falls in semiconductor and other technology stocks. Major chipmakers Samsung Electronics (005930.KS) and SK Hynix (000660.KS) slid 0.9% and 2.6%, respectively, reversing from their own recent peaks.
Not every large-cap in Korea followed the tech-led weakness. Hyundai Motor (005380.KS) bucked the downward trend, rising 2.5% to a record high after announcing plans to invest approximately 9 trillion won - roughly $6.26 billion - in an artificial intelligence data centre and a robot factory in South Korea.
The KOSPI has been a principal beneficiary of market optimism linked to artificial intelligence, with many of its technology and industrial constituents viewed as potential long-term beneficiaries of the emerging technology. Over the month, the index was on track to gain nearly 20%, making it the strongest performer in the region for February.
Japan - mixed session as softer Tokyo inflation boosts domestic plays
In Tokyo, the Nikkei 225 slipped 0.2%, weighed down by declines in local technology stocks, while the broader TOPIX climbed 0.8%. Tokyo's consumer price index showed inflation cooled in February, with core inflation falling below the Bank of Japan's 2% annual target. Because Tokyo's CPI often serves as an indicator for national inflation trends, the softer print suggested a potential reassessment of the BOJ's path on rate hikes.
That dynamic supported stocks with greater domestic exposure, particularly as Prime Minister Sanae Takaichi prepares additional fiscal stimulus measures. Expectations for increased fiscal support were an important factor behind Japanese market gains in February; the Nikkei was trading up nearly 10% for the month.
Other regional markets - mixed outcomes
Broader Asian markets showed a mix of results on Friday. Australia's ASX 200 was flat on the day and poised for a roughly 3.3% rise in February, having reached multiple record highs during the month on strength in mining and banking names.
In mainland China, the Shanghai Shenzhen CSI 300 dropped 0.5% while the Shanghai Composite was flat; both indices had produced muted results across February. Hong Kong's Hang Seng rose 0.7% on Friday, with internet heavyweight Baidu advancing about 1% despite fourth-quarter results that were described as largely underwhelming. The Hang Seng nonetheless was down roughly 3.2% for the month, pressured by losses in local technology stocks amid concerns about AI-related disruption.
Futures for India's Nifty 50 were unchanged in Asian hours. The index itself was up about 0.6% for February, a result of heavy losses in local technology stocks - driven by AI-related fears - being offset by gains in industrial and manufacturing firms that could benefit from AI data centre construction in the country.
Singapore's Straits Times was up 0.4% on Friday and had climbed about 1.6% during the month, also hitting record highs over the period.
Overall, the regional session highlighted a bifurcated market: near-term weakness in technology names tracking U.S. moves, and a continuing rotation toward domestically oriented and industrial stocks where AI buildout and fiscal measures are expected to provide support.