Alphabet shares plunged more than 12%, sending shockwaves through global markets. The Nikkei Average fell for the first time in 4 days, while the KOSPI also opened down about 3%.
Disappointment over Alphabet's quarterly results spread, reviving concerns about the profitability of AI infrastructure investment. Its share price plunged more than 12%, reducing its market capitalization by about $500 billion in a single day. Against this backdrop, the Nikkei Average fell for the first time in 4 days when trading began in Tokyo on the 30th, weighing on sentiment across Asian markets.
The Nikkei Average opened at 64,344.37, down ¥315.10 from the previous day, and at one point extended its decline to ¥840. The KOSPI in South Korea also opened down about 3%, spreading bearish sentiment among Asian investors.
In the US market, the Dow, S&P 500 and Nasdaq were sluggish, while Alphabet's plunge weighed on the communications sector. Selling in after-hours trading following earnings reports from Amazon and Intel also had an impact, bringing the SOX Index's 4-day winning streak to a halt.
How AI-related capital investment will translate into actual earnings is expected to remain a focus. Robust demand for semiconductors and servers is coexisting with uncertainty over investment returns, and tech stocks in Japan, South Korea and the US may continue to see volatile price movements.