Asian equities fell at the end of a volatile week marked by conflicting views, as investors balanced optimism over technological advances with concerns over stretched artificial intelligence valuations.
The MSCI Asia Pacific Index dropped 1.1%, putting the gauge on track for its worst week since early August. SoftBank Group Corp. shares led declines in Japanese chip-related stocks.
Earlier, US equity benchmarks dropped for the second time in three sessions with AI-related firms such as Nvidia Corp. tumbling, while the VIX volatility gauge spiked.
The MSCI All Country World Index is on track for its first weekly decline in four. The sentiment is set to carry over to Europe with contracts indicating a weaker open for equities. US stock-index futures edged up.
Tesla Inc. advanced 1.6% in extended trading after its shareholders approved a $1 trillion compensation package for Chief Executive Officer Elon Musk.
Investors who fueled the rally on expectations of Federal Reserve interest-rate cuts and AI-driven growth are now questioning whether the massive capital spending will deliver returns.
