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Akbar Novruz

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Equity markets across the Asia-Pacific region opened sharply lower on Friday, extending a global risk-off move triggered by a tech-led selloff on Wall Street and fresh signs of cooling momentum in the U.S. labor market, Azernews reports.

In early trading, South Korea’s KOSPI was among the hardest hit, plunging by more than two percent as investor sentiment deteriorated across the region. The broader downturn followed a significant decline in U.S. equities overnight, where losses in major technology stocks spilled over into global markets and pressured risk-sensitive assets.

Market specialists said sectors that had driven much of the rally in recent months — notably technology, artificial intelligence, precious metals, and cryptocurrencies — were now facing broad-based corrections. This shift has made the week particularly difficult for investors with heavy exposure to high-growth and alternative assets, as gold, industrial metals, and digital currencies also retreated.

Sentiment was further weakened by new U.S. labor data, which showed monthly job openings falling to their lowest level since 2020. At the same time, jobless claims increased and corporate job-cut announcements reached their highest level for January since the global financial crisis, raising concerns about the resilience of the U.S. economy.

By mid-session, South Korea’s KOSPI had fallen to 5,057.77. Australia’s ASX 200 slid to 8,737.00, while Japan’s NIKKEI edged higher to 53,968.45, bucking the regional trend. In China, Shanghai’s SSEC declined to 4,057.81 and Shenzhen’s SZI dropped to 13,850.80. Hong Kong’s HSI also came under pressure, falling to 26,434.26.

U.S. markets closed lower on Thursday, reinforcing the cautious mood. The Dow Jones Industrial Average dropped to 48,908.72, while the NASDAQ and S&P 500 also posted notable declines. Market volatility spiked sharply, with the VIX jumping to its highest level in weeks, reflecting growing investor anxiety.

In commodities, oil prices settled lower after news that the United States and Iran were planning to begin talks in Oman, easing fears of potential disruptions to Iranian oil exports. Brent crude closed at $67.55 per barrel, while U.S. West Texas Intermediate finished at $63.29. Prices were largely unchanged in early trading on Friday.

Gold futures also came under pressure, falling to $4,813.60 per troy ounce, as investors reduced exposure to safe-haven assets amid broader deleveraging across markets.

Overall, analysts say markets are entering a more fragile phase, with investors increasingly sensitive to U.S. economic data, monetary policy expectations, and geopolitical developments that could shape global risk appetite in the weeks ahead.