Asian equity markets extended their decline on Thursday, driven by a sustained rotation out of heavyweight semiconductor names following a stellar quarterly performance.
The MSCI Asia Pacific ex-Japan index fell 0.8%, while Japan’s Nikkei 225 dropped 1.1%, adding to a weak start to the quarter.
7% on Friday, underscoring the breadth of the retreat from semiconductor-heavy portfolios.
This selling pressure highlights the fragility of the region's tech-heavy indices as traders take profits after recent gains.
The selloff reflects a broader shift in sentiment, with investors moving away from high-growth tech stocks amid uncertainty over future earnings momentum.
The MSCI Asia Pacific Index had previously fallen 1.7% on Friday, underscoring the breadth of the retreat from semiconductor-heavy portfolios.
This rotation suggests that the rally in chipmakers may be pausing as market participants reassess valuations and risk exposure.