Nikkei enters bear market as AI-driven selling hits Asian chip shares

What happened

Japan's Nikkei entered a bear market as shares tied to artificial intelligence and semiconductors came under sharp selling pressure, according to reports on the Asian session.

Asian technology stocks fell broadly on Friday, following an overnight sell-off on Wall Street that sent the tech-heavy Nasdaq Composite into correction territory. Chip and tech names including SK Hynix, Samsung, SoftBank and TSMC were among those that dropped.

Why it matters

Semiconductor and AI-linked shares have become a large part of index weightings in both the United States and Asia, so repricing in that group tends to move whole benchmarks rather than a single sector. Moves on Wall Street also carry into the next Asian session, because many listed chipmakers and suppliers sit in the same global supply chain and are valued against the same growth expectations.

Broad equity drawdowns usually show up elsewhere too. Risk reduction in stocks can shift demand toward assets treated as havens, including gold and the yen, and can change how traders price the dollar and expectations for central bank policy. Crypto often trades with the same risk appetite as high-growth technology shares.

What to watch

Further sessions on the Nasdaq and the read-across into Asian chipmakers such as SK Hynix, Samsung, SoftBank and TSMC, along with any sign of whether the Nikkei holds or exits bear market territory.