Asian equity markets extended their decline on Thursday, with the MSCI Asia Pacific ex-Japan index falling 0.8% and Japan’s Nikkei 225 dropping 1.1%.
The losses added to a weak start to the quarter, driven by a sustained rotation out of heavyweight semiconductor names that have weighed on regional sentiment.
7% on Friday as investors continued to trim exposure to technology stocks.
The selloff in chipmakers reflects broader caution among investors who are positioning for potential volatility ahead of the upcoming US non-farm payrolls report.
Market participants are closely watching the labor data for signals on the Federal Reserve’s next policy move, with a softer print potentially reinforcing expectations for rate cuts, while a strong report could delay easing.
This marks a continuation of the pressure seen earlier in the week, when the MSCI Asia Pacific index fell 1.7% on Friday as investors continued to trim exposure to technology stocks.
The divergence in sector performance highlights the fragility of the current rally, with healthcare shares posting gains while technology faces headwinds from valuation concerns and shifting growth expectations.