Asian shares plunge as profit-taking hits AI-driven rally

Asian equities plunged on Friday as traders locked in profits from recent rallies driven by artificial intelligence, with Japan's Nikkei 225 and South Korea's Kospi suffering the heaviest losses. The Nikkei shed 5% to 68,783.50, while the Kospi tumbled 8.4% to 8,182.54. Hong Kong's Hang Seng fell 1.9% to 22,644.49, and the Shanghai Composite slipped 2.1% to 4,032.30. Australia's S&P/ASX 200 was nearly unchanged at 8,745.80.

The sell-off reflects typical volatility in markets as investors react to the massive inflows into AI data centers and related investments. Both the Nikkei and Kospi had hit record highs earlier this week, prompting profit-taking. For energy traders, the broad equity decline signals potential risk-off sentiment that could weigh on oil demand expectations. However, the impact on crude prices may be tempered by ongoing supply concerns and geopolitical factors. Traders can monitor real-time price movements on NowPrice's live fuel dashboard to track how these market shifts affect energy commodities.

Looking ahead, investors will focus on next week's economic data releases, including U.S. jobs reports and manufacturing figures, which could provide further direction. The volatility in Asian markets may persist as traders assess the sustainability of AI-driven gains and the broader economic outlook. Any signs of stabilization in equity markets could support oil prices, while continued weakness might reinforce bearish sentiment in energy markets.