Asian stocks fall as AI doubts return; Bank of Japan holds rates at 1.25%

Asian stocks slide on AI doubts

Shares in Asia fell on Friday, 30 October 2026, as investors revisited doubts about whether heavy spending on artificial intelligence will pay off. Technology stocks led the decline after disappointing financial results from leading global tech companies failed to ease concerns about the sector. Early in the session, AP reported Japan's Nikkei 225 down 2.6% at 62,960.60 and South Korea's Kospi down 5.4% at 5,618.76, with SK Hynix and Samsung Electronics both slipping. By the close, the Nikkei had fallen 2.12% to 63,290 points, ending three straight days of gains, while the Kospi had dropped 3.48% to 5,730.74. The broader Topix lost 0.95% to 3,965.07.

Other markets also traded lower. ANSA reported Shanghai down 1.36%, Shenzhen down 2.41% and Mumbai down 0.70% while trading was still under way. N-tv reported that SK Hynix shares fell 6.3% and Samsung shares 2.3% in Seoul, as the chip makers came under pressure again.

Tokyo-2.12%

Seoul-3.48%

Shanghai-1.36%

Shenzhen-2.41%

Mumbai-0.7%

Tokyo

-2.12 %

Seoul

-3.48 %

Shanghai

-1.36 %

Shenzhen

-2.41 %

Mumbai

-0.7 %

Data from the article text

Wall Street's slide on 29 October

The Asian sell-off followed a weak session in the United States on 29 October. Alphabet's Class A shares fell 12.6% that day, their worst day since they began trading more than 20 years ago, after its results suggested AI-based search has so far been little lucrative. The S&P 500 closed at 7,720.39, down 23.59 points, while the Dow Jones Industrial Average finished at 52,342.56 and the Nasdaq composite fell 365.13 points to 26,184.72. Alphabet is one of the most influential stocks on Wall Street because it is one of the largest. The yield on the 10-year Treasury had topped 5.30% earlier in October, its highest level since 2002, before easing to 4.94% from 5.05% late on the previous day.

Bank of Japan holds rates and leaves the door open

The Bank of Japan kept its benchmark rate at 1.25% at the end of its two-day meeting, with eight board members voting to hold and one voting for a rise. Hajime Takata was the only dissenter, arguing for an increase to 1.5%. The central bank also raised its inflation forecast and signalled further rate increases as inflation risks grow. Governor Kazuo Ueda is due to explain the decision at a press conference. The hold follows the central bank's September increase, and most analysts had expected no change this time. The United States has also pressed Japan to raise rates because of the weakening yen, which traded at about 157.50 to 157.60 per dollar during the session.

Tech stocks, bonds and oil

AI-linked Japanese stocks fell sharply at the Tokyo close on 30 October, with Lasertec down 8.8% and Kioxia Holdings down 7.1%. SoftBank Group fell 6%, Advantest 5.9% and Tokyo Electron 5.2%.

Lasertec-8.8%

Kioxia Holdings-7.1%

SoftBank Group-6%

Advantest-5.9%

Tokyo Electron-5.2%

Lasertec

-8.8 %

Kioxia Holdings

-7.1 %

SoftBank Group

-6 %

Advantest

-5.9 %

Tokyo Electron

-5.2 %

Data from the article text

Oil prices rose on 30 October, with US crude up 2.80% to $104.86 a barrel and Brent up 2.54% to $117.80. N-tv linked the gain to fears of a renewed escalation of the Iran war, after oil had dipped the previous day. The euro traded at $1.1197, up from $1.1181, as the dollar held steady against the yen.