Asian markets plunge: Nikkei down nearly 2,200 points, KOSPI over 5% triggers circuit breaker

Asian stock markets experienced a sharp downturn on Friday, mirroring a decline in U.S. markets from the previous day. Japan's Nikkei index saw a dramatic drop of nearly 2,200 points, while South Korea's KOSPI plunged over 5%, triggering a circuit breaker due to the steep losses.

The sell-off was fueled by lingering concerns over massive artificial intelligence (AI) spending by major tech companies, which weighed on Wall Street on Thursday. Additionally, soaring oil prices exacerbated inflation worries, contributing to the negative sentiment that spread to Asian markets.

In Japan, the Nikkei opened lower and continued to slide, falling below 66,000 points. Technology, chip, and airline stocks were among the biggest decliners. The index eventually traded around 64,568 points, down 2.79% for the morning session.

South Korea's KOSPI, after a strong rally the previous day, reversed course sharply. The index opened down and saw significant drops in major tech firms like SK Hynix and Samsung Electronics, both falling over 5%. The rapid decline led to the market's circuit breaker being triggered as the index fell below 6,800 points.