A blistering run in global equities halted amid rising concern that technology valuations have run too far. Asian shares fell 0.8%, tracking declines in the US, with technology firms dragging in Japan and China.
Semiconductor Manufacturing International Corp. slumped 7% after reports that brokerages have cut the stock’s margin financing ratio to zero, citing high valuations.
A gauge of Chinese tech shares in Hong Kong was set for its worst week since early August. Equity-index futures for Europe and the US were flat.
The dollar slipped after a four-day rally took it to the strongest since the beginning of August. A Bloomberg gauge of the currency was set for its best weekly gain since mid-November 2024.
Gold extended its losses, while oil held the biggest decline in a week. Global shares were set for a second decline in three weeks as investors took a pause following a robust rebound from April’s lows, when tariff announcements shook markets.
The surge in AI-focused technology companies has fueled a debate over whether prices are running ahead of fundamentals. “Some areas of the market appear overheated,” said Keith Lerner at Truist Advisory Services Inc.
