Asian stock markets rebounded on Friday after a sharp sell-off linked to worries about debt at AI firms and high technology valuations. Japan’s Nikkei, South Korea’s Kospi and Taiwan’s market all moved higher, according to market reports.
The recovery followed a technology-led drop that raised questions about how long the AI investment boom can last. Investors are watching whether big spending on artificial intelligence will pay off.
What spooked investors
Concerns grew after reports about the debt position of AI infrastructure firms. Traders worried that too much money was flowing into AI projects without clear returns.
Analysts said the sell-off was a reminder that markets can turn quickly when valuations stretch too far.
Calm, but cautious
Despite the rebound, uncertainty remains. Market watchers said investors will keep a close eye on company earnings and central bank decisions in the coming weeks.
European markets also steadied after the rebound in Asia. Investors now await US inflation data, which could shape the next move by the Federal Reserve.
Gold prices stayed firm as some investors sought safety during the volatile week. The metal is often seen as a shelter when stocks swing sharply.
Looking ahead, traders said tech earnings will be the next big test. Strong results could rebuild confidence, while weak numbers might restart the sell-off.
Back home, Pakistani investors watched global cues closely. Dealers at the PSX said foreign fund flows often follow the mood in Asian and US markets. For now, most analysts advise investors to stay selective and avoid chasing sharp rallies.
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