Asia stocks slump as tech slides tracking Nvidia losses; Tokyo CPI in focus

Investing.com-- Asian stocks tumbled on Friday, with Japan and South Korea leading the declines, as local tech shares sank following an Nvidia-driven sell-off on Wall Street, while investors analyzed Tokyo’s latest inflation data.

Major U.S. stock indexes fell sharply on Thursday, led by a steep decline in NVIDIA Corporation (NASDAQ:NVDA) shares, which tumbled despite posting better-than-expected earnings, as investors focused on concerns over its profit margins. 

Meanwhile, investors remained cautious ahead of the key PCE inflation report due later in the day, which could influence the Federal Reserve’s interest rate outlook.

Asian tech stocks slide tracking Nvidia’s slump

Japan’s Nikkei 225 plunged 3.2% to its lowest level since mid-September 2024.

SoftBank (TYO:9984) shares slumped 5.3%, whileTokyo Electron (TYO:8035) stock slid 5.1%. Panasonic (OTC:PCRFY) Corp (TYO:6752) shares fell 2%.

South Korea’s KOSPI declined 3.1% with tech heavyweights Samsung Electronics (KS:005930), and SK Hynix Inc (KS:000660) dropping 2.2%, and 4.7%, respectively.

Nifty 50 dropped 1% at open, while Australia’s S&P/ASX 200 index slipped 1.1%.

Hong Kong shares set to jump 15% in Feb on DeepSeek optimism

China’s Shanghai Composite fell more than 1% on Friday, while the Shanghai Shenzhen CSI 300 index lost 0.9%. 

Hong Kong’s Hang Seng index dropped 2.6%. 

However, in February, Hong Kong stock markets experienced remarkable gains, primarily driven by investor enthusiasm surrounding DeepSeek’s advancements in artificial intelligence (AI).

Hang Seng index was set to gain nearly 15% in February.

Despite concerns over U.S. tariffs, Chinese tech stocks have experienced a surge in optimism, largely due to the emergence of DeepSeek, a homegrown AI company. 

DeepSeek, which is considered better or at par with leading players like OpenAI, had instilled confidence in China’s technological capabilities, leading to increased investments in the sector.

Hong Kong-listed Alibaba’s (HK:9988) stock has surged nearly 48% in February, while Xiaomi (OTC:XIACF) Corp (HK:1810) shares have climbed more than 37% this month.

Investors digest Tokyo inflation, Japan’s factory data

Tokyo’s core consumer prices rose by 2.2% year-on-year in February, a deceleration from January’s 2.5% increase, data showed on Friday.

Despite the moderation, the inflation rate remained above the Bank of Japan’s 2% target for the fourth consecutive month.

Other data showed that Japan’s industrial production in Jan decreased by 1.1% month-on-month, aligning with market expectations. 

Manufacturers anticipate a 5.0% increase in output for February, followed by a 2.0% decline in March, indicating cautious optimism about future production levels. 

Concurrently, retail sales experienced a 3.9% year-on-year rise in January, in line with projections, reflecting steady private spending.