[MARKET ANALYSIS] Asia-Pac stocks declined after tech/AI-related concerns were stoked

APAC Stocks: Negative

• Asia-Pac stocks are mostly lower as the region takes its cue from the losses stateside, where tech underperformed as AI-disruption concerns re-emerged, and logistics/industrials stocks were pressured after Algorhythm Holdings (RIME) released its AI freight scaling tool.

ASX 200: -1.3%

• Index was dragged lower by losses in tech stocks, and with participants also digesting earnings releases.

Nikkei 225: -0.7%

• Retreated at the open following recent currency strength and with focus also on earnings, including from SoftBank which returned to profit in Q3 but missed expectations, while its shares were also pressured by its deep AI exposure.

Hang Seng & Shanghai Comp: Hang Seng -1.9% / Shanghai Comp -0.8%

• Chinese markets suffered alongside the broad downbeat mood in the region, and despite reports that President Trump paused some China tech bans ahead of his summit with Xi in April, while it is also the last trading day in the mainland before the Lunar New Year and Spring Festival holiday closures.

US Equity Futures: Flat

• US index futures are flat and linger around the prior day's trough.

European Equity Futures +0.3%

• Indicate a mildly positive cash market open with Euro Stoxx 50 futures up 0.3% after the cash market closed with losses of 0.4% on Thursday.

APAC stocks have declined primarily due to renewed concerns surrounding AI disruptions, particularly after a significant announcement related to AI freight logistics. This drop reflects a broader negative sentiment stemming from the underperformance of tech sectors in the U.S., with potential implications for risk sentiment across equities and related sectors. Watch for how these developments may influence investor behavior in both the region and the upcoming U.S. market opening.