Asia markets tumble amid renewed tech sell-off and US-China jitters; weak China trade data adds to pressure

[Financial stock market numbers and city light reflection]
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Asia stocks trade in red on Friday following overnight losses on Wall Street as renewed tech weakness and worries over the prolonged U.S. government shutdown hit sentiment. The downturn was compounded by renewed geopolitical tensions between the United States and China, which further unsettled investor confidence across asset classes. Weak trade data from top consumer China also weighed on the sentiment.

Gold prices rose to around $4,000 per ounce on Friday after soft labor data reinforced expectations of a near-term Federal Reserve rate cut.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) fell 1.48% to around 50,220 while the broader Topix Index lost 0.5% to 3,297 on Friday, erasing gains from the previous session. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] traded near 153 on Friday, holding gains from the previous session as a broad risk-off wave, triggered by mounting concerns overstretched AI valuations, lifted demand for the safe-haven currency.

Household spending in Japan rose 1.8% yoy in September 2025, missing market estimates of 2.5% and easing from a 2.3% growth in the prior month.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) fell 0.21% toward 4,000 while the Shenzhen Component lost 0.2% to 13,430 on Friday, with mainland stocks snapping a two-day decline, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] weakened to around 7.12 per dollar on Friday, reversing gains from the previous session as China’s unexpected export contraction weighed on an economy facing a year-end slowdown.

China's trade surplus narrowed significantly in October 2025 [https://seekingalpha.com/news/4518258-chinas-trade-surplus-shrinks-in-october-as-exports-unexpectedly-fall-combined-with-a-rise-in-imports], falling to USD 90.07 billion. This figure was smaller than market expectations of USD 95.6 billion and marked a decrease from the USD 95.72 billion recorded in the same month last year. It represents the country's smallest trade surplus since February, driven by an unexpected decline in exports combined with a rise in imports.

The U.S. is moving ahead with President Donald Trump’s plan to pause penalties targeting China’s shipbuilding industry, a key concession in his interim trade pact with President Xi Jinping, the office of the U.S. Trade representative announced on Thursday.

Attention also turned to October Chinese CPI and PPI data due over the weekend, with deflation risks still a concern.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) fell 1.17% to 26,282 in Friday’s morning session, retreating after their biggest one-day gain since mid-August amid caution ahead of China’s October trade data.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) fell 0.39% to 82,794, hitting its lowest level since October 15 and marking a third consecutive session of losses.

The Indian rupee traded around 88.6 per dollar, moving in a tight range, as the Reserve Bank continued its regular interventions to curb excessive volatility.

India’s Securities and Exchange Board and the Reserve Bank of India are considering allowing commercial banks to trade in commodity derivatives to enhance market liquidity.

India’s Commerce and Industry Minister Piyush Goyal on Thursday said that talks are progressing rapidly between India and New Zealand, expressing hope that the free trade agreement will be finalized soon, according to news agency PTI.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) fell 0.66% to around 8,827 in Friday morning trade, pausing the previous session’s advance, as losses in tech shares outweighed gains in energy and gold stocks. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] depreciated below $0.650, hitting its lowest level in four weeks, as renewed risk-off sentiment swept across global markets.

In the U.S. on Thursday, all three major indexes ended in red [https://seekingalpha.com/news/4517377-sp500-dow-jones-nasdaq-composite-stock-market-news] with the S&P 500 down 1%, the Nasdaq off 1.7%, and the Dow Jones slipping 317 points as renewed pressure on AI-linked and tech shares weighed on Wall Street. Concerns over lofty AI valuations resurfaced after mixed earnings.

U.S. stock futures inched higher on Friday after a sharp selloff in the previous session, as renewed pressure on tech and AI-linked shares dragged Wall Street lower: Dow +0.25%; S&P 500 +0.28%; Nasdaq +0.35%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA:

China's trade surplus shrinks in October as exports unexpectedly fall combined with a rise in imports [https://seekingalpha.com/news/4518258-chinas-trade-surplus-shrinks-in-october-as-exports-unexpectedly-fall-combined-with-a-rise-in-imports#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China’s factory growth cools to 50.6 in October, export uncertainty rises [https://seekingalpha.com/news/4512722-chinas-factory-growth-cools-to-506-in-october-export-uncertainty-rises#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's factory activity contracts for first time in 2025 to 49.7 in October [https://seekingalpha.com/news/4512723-australias-factory-activity-contracts-for-first-time-in-2025-to-497-in-october#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australian monthly inflation eases slightly, annual figures show persistent pressure [https://seekingalpha.com/news/4512726-australian-monthly-inflation-eases-slightly-annual-figures-show-persistent-pressure#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's economic slowdown deepens as factory activity hits six-month low to 49.0 in October [https://seekingalpha.com/news/4512084-chinas-economic-slowdown-deepens-as-factory-activity-hits-six-month-low-to-490-in-october#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]