Alphabet's 12.6% Drop Ripples Into Asia, But Australian Stocks Rise

Asian shares traded mixed Friday as Alphabet's 12.6% Class A stock decline, its steepest single-day fall in more than 20 years of trading, fed worries about AI-related investments. Japan's Nikkei 225 fell 2.3% to 63,155.94 in afternoon trading, South Korea's Kospi dropped nearly 4% to 5,701.71, and Hong Kong's Hang Seng rose 1.7% to 23,359.06. The Shanghai Composite lost 0.4% to 3,636.60, while Australia's S&P/ASX 200 added 0.2% to 8,908.10.

Shares tied to AI interest have been volatile, with chip makers rising on that interest and later declining over supply worries. SK Hynix and Samsung Electronics both slipped during Friday's session. In the United States Thursday, Alphabet's decline pushed the Nasdaq composite down 365.13 points to 26,184.72, its largest one-day point drop in the index. The S&P 500 fell 23.59 points to 7,720.39, its first decline in four sessions, even as most stocks in the index rose. The Dow Jones Industrial Average lost 132.54 points to 52,342.56.

The Bank of Japan ended its two-day policy meeting Friday without changing its benchmark rate, which stays at 1.25%. The central bank raised the rate last month, and the hold was widely expected. The U.S. has pressed Japan to raise rates because of the yen's weakness. The dollar moved to 157.67 yen from 157.65 yen, and the euro traded at $1.1186, up from $1.1181.

In bond markets, the 10-year Treasury yield slipped to 4.94% from 5.05% late Wednesday. The yield topped 5.30% earlier in October, its highest since 2002, before retreating. U.S. crude gained 1.15% to $103.17 a barrel, and Brent rose 1.05% to $116.09 a barrel.

Alphabet's Class A shares closed down 12.6% Thursday. The company is among the largest stocks on Wall Street, and its decline weighed on the major indexes. The S&P 500 finished at 7,720.39, the Dow at 52,342.56, and the Nasdaq at 26,184.72.