MANILA, Philippines (AP) -- Asian stocks on Friday tracked Wall Street's sharp drop in skittish trading, with the region's major benchmarks erasing the previous day's gains.
U.S. futures were higher, while oil prices declined.
Japan's Nikkei 225 fell 2.4% to 48,645.95 as worries persist about a bubble in artificial intelligence related shares. Better than expected U.S. jobs data also raised the likelihood that the Federal Reserve will hold off on an interest rate cut in December.
Investors were awaiting the announcement of a stimulus package from Prime Minister Sanae Takaichi. Plans for higher government spending have put the yen and Japanese government bonds under pressure. Data on Friday showed the country's annual inflation rate rose to 3.0% in October 2025 from 2.9% in September.
Japan reported Friday that its exports to the rest of the world rose in October, while those to the U.S. fell. Higher shipments to elsewhere in Asia helped offset the drop in exports to the U.S due to President Donald Trump's higher tariffs.
South Korea's KOSPI tumbled 3.9% to 3,847.91, reversing Thursday's gains. Samsung Electronics sank 5.8%, while SK Hynix plunged 8.6%.
In Chinese markets, Hong Kong's Hang Seng index skidded 2.3% to 25,237.94 while the Shanghai Composite index slid 1.8% to 3,860.77, with pressure also coming from escalating friction between China and Japan over Taiwan.
Australia's S&P/ASX 200 fell 1.5% to 8,425.30. Taiwan's Taiex retreated nearly 3.2%.
"What began as a textbook "Nvidia bounce" flipped into one of the most violent intraday reversals since the April dump, and Asia -- ever the obedient understudy -- marched directly into the same plunge tank on the open," Stephen Innes of SPI Asset Management said in a commentary.
On Thursday, jarring swings rocked Wall Street, and U.S. stocks erased a big morning gain to drop as the market remains skittish following weeks of doubts and erratic moves.
The S&P 500 erased early gains to fall 1.6% to 6,538.76, while the Dow Jones Industrial Average dropped 0.8% to 45,752.26. The Nasdaq composite sank 2.2% to 22,078.05.
The sharpest losses again hit what used to be the market's biggest winners. Nvidia, cryptocurrencies and other areas that had soared with nearly relentless momentum, as traders feared missing out on more gains, forced the market lower. Bitcoin dropped below $87,000, down from nearly $125,000 last month.
The market was shaky coming into Thursday largely because of twin worries: Nvidia and other superstar stocks caught up in the frenzy around artificial-intelligence technology may have simply shot too high. Also, the Federal Reserve may be done delivering the invigorating cuts to interest rates that Wall Street loves.
Nvidia initially appeared to tamp down the worries about a bubble for AI stocks after reporting a big profit for the summer, along with a forecast for coming revenue that easily cleared analysts' expectations. By delivering strong profits and indicating more are coming, Nvidia can justify its stock's price gains and make it look less expensive.
In other dealings early Friday, U.S. benchmark crude oil slid 77 cents to $58.23 per barrel. Brent crude, the international standard, lost 68 cents to $62.70 per barrel.
The U.S. dollar fell to 157.39 Japanese yen from 157.42 yen. The euro rose to $1.1539 from $1.1531.
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AP Business Writers Stan Choe and Matt Ott contributed.
