US stocks were sold as concerns over excessive AI investment resurfaced and major technology stocks fell, while Japanese AI and semiconductor stocks also came under selling pressure despite their elevated valuations, with the Nikkei Average frequently plunging.
Concerns over excessive AI investment resurfaced in the US stock market. In trading on 30 October, technology stocks including the Nasdaq and SOX fell, while Alphabet's share price plunged after its results came in below market expectations. Intel's results also fell below expectations, and selling spread, particularly among AI infrastructure-related stocks. Some stocks accelerated their declines in response, and the Nasdaq fell for the first time in four trading days.
Among US economic indicators, the September PCE price index rose 3.6% year on year, in line with market expectations. The core index rose 3.1%, indicating persistent inflationary pressure amid large fluctuations in energy and food prices. The impact of higher crude oil prices also continued.
In the Chinese market, the Shanghai Composite fell 1.44% from the previous day on 30 October, falling below 3,600 to a level near a 15-month low. Selling on rallies spread, particularly among AI-related stocks, while some financial and high-dividend stocks provided support at times.
In the Japanese market, the Nikkei Average fell ¥1,369 on 30 October, sharply reversing lower in response to declines in US technology stocks. AI- and semiconductor-related stocks were broadly lower at times, with Advantest making a significant contribution to the decline, while dip-buying was also seen in the afternoon. The Bank of Japan's policy of accelerating the pace of ETF sales was viewed as having a limited market impact.