Market watch: Asia stocks slide as risk-off mood deepens; oil extends weekly losses

Asian equities slumped on Friday as renewed fears around overstretched tech valuations and ambiguous US jobs data pulled investors sharply away from risk assets. The downturn came despite Nvidia’s blockbuster earnings earlier in the week, which had briefly revived confidence in the strength of the AI sector.According to news agency AFP, concerns over an AI-driven market bubble resurfaced quickly, with tech majors across Asia leading the sell-off. Nvidia CEO Jensen Huang attempted to calm nerves, insisting during the company’s latest update that, “From our vantage point, we see something very different,” but the reassurance offered only temporary relief.Markets across Tokyo, Hong Kong, Seoul, Sydney and Taipei tumbled between 1.6% and 3.2%, as per AFP, with chipmakers absorbing the worst damage. Samsung Electronics plunged nearly five per cent, SK hynix more than nine per cent, and Taiwan’s TSMC slid almost four per cent. SoftBank also crashed over 10% in Tokyo.The shift in sentiment followed a sharp reversal on Wall Street. While US equities initially rose on Nvidia’s results, the rally collapsed after fresh labour data showed job gains in September but also a rise in the unemployment rate — a combination offering little clarity on the Fed’s near-term rate path. As per Reuters, futures now imply a 40% probability of a December rate cut. US futures now imply a 40% chance of a December cut, compared with 30% a day earlier.MSCI’s broadest index of Asia-Pacific shares outside Japan sank 1.8%, taking weekly losses to 3% — the steepest drop since April.Analysts said the market’s fragility was clear, with investors dumping positions even in response to neutral or mildly positive news.Currencies also reacted sharply. The yen briefly firmed after Japan’s finance minister signalled possible intervention against speculative trading, though it remained near a 10-month low around 157.40 per dollar, as per Reuters. Japanese bond yields stayed elevated as traders awaited a stimulus package reportedly worth more than $130 billion.Bitcoin slid below $93,000 for the first time since April, extending a sharp retreat from last month’s record high above $126,200.Oil prices extended their decline for a third session. Brent slipped to $62.67 a barrel and WTI to $58.29. As per Reuters, market sentiment turned bearish as Washington pushed for a Russia-Ukraine peace deal that could bring more crude to market, while a stronger dollar added pressure. Both benchmarks are on track for weekly drops of more than 2% amid oversupply worries.