Newscasts - Asian stocks slide amid jitters over possible tech bubble
05/11/2025 07:28
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_mqu2ugsr&referenceId=tag:reuters.com,2025:newsml_RW951205112025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Asian stocks dived on Wednesday (November 5) and market volatility surged to levels not seen since April after an overnight tech-led selloff on Wall Street put the spotlight on stretched valuations. Julian Satterthwaite reports. Short Link: https://lseg.group/4onScHd Video Transcript: Asian shares took a tumble in Wednesday morning trade, following an earlier sell-off for tech stocks on Wall Street. Japan's Nikkei index slid around 3.5% in morning trade, with South Korea's KOSPI index also sharply down. Tech names were the big losers on both markets, with Samsung off close to 4%. Japan's SoftBank Group plunged about 10%, with the major tech investor seen as heavily exposed to any change of sentiment in the US. Global stocks have been retreating from record highs in recent days on fears gains may have been overdone. Among the negatives are warnings from heavyweights Morgan Stanley and Goldman Sachs, who have both questioned whether sky-high stock valuations can be sustained. Last month, JPMorgan Chase boss Jamie Dimon also cautioned that there was a heightened risk of a major stock market correction. Those warnings come after a surge of enthusiasm for AI-related stocks like NVIDIA drove markets to unprecedented highs. That has drawn comparisons with the dot-com bubble of years past. Investment Strategist Rob Haworth at US Bank Asset Management Group says stubborn price rises remain a big worry for Wall Street too. I think if the Fed comes around to December and doesn't cut rates, that tells a pretty tough story for inflation. Chinese shares also struggled Wednesday, with the CSI 300 index dropping over 0.5% before recovering. Sentiment there was also hit by data showing slower growth for the country's service sector.