Hong Kong, October 23, 2026 (V7N) – Asian equities were mixed Friday as tech firms clawed back some early losses on bargain-buying at the end of a tough week for the sector, while traditional safe havens benefited from a generally cautious mood.

Since AI-linked companies hit record highs in June, their equity prices have been pummelled by concerns they were overvalued, that huge outlays on infrastructure and hardware might not return a profit and, more recently, that servicing costs were spiralling. That has combined with an Iran war-fuelled surge in oil prices to more than $100 that has ramped up inflation, forced central banks to hike interest rates and sent government borrowing costs to multi-decade highs.

Strong earnings in past quarters had tempered many concerns, but analysts said investors are demanding better and better results to justify their backing. Earnings from Meta and chip equipment maker Lam Research this week beat forecasts but their shares dived.

"Even positive news is being ignored," said FOREX.com's Fawad Razaqzada. "Strong results are no longer enough if the outlook fails to match an already demanding valuation. Investors are becoming much less forgiving."

The rush out of tech has boosted industrial companies overlooked during much of the AI boom, with the Dow rising this week while the Nasdaq and S&P 500 retreated.

Seoul, at the forefront of the AI boom, shed more than two percent after the open but was up at the close. Chipmaker SK hynix ended up more than four percent, though its US shares fell more than eight percent Thursday after it scrapped plans for an IPO of its US subsidiary Solidigm, citing "market conditions and share price trends."

There were gains in Hong Kong, Shanghai, Sydney, Singapore and Jakarta. Tokyo's Nikkei 225 ended in the red, though well off earlier lows. Wellington, Mumbai and Manila were also down. Taipei was closed as Typhoon Champi neared Taiwan. London and Frankfurt fell at the open, but Paris edged up.

Safe havens benefited, with the yen rallying against the dollar, helped by strong Japanese inflation data that boosted bets on another interest rate hike. US Treasuries were also in demand, with two- and 10-year yields at one-month lows.

"Markets are looking for safe havens as the now familiar fears over AI and the tech sector, alongside ever higher oil and energy prices, are powering a move back into bonds," said National Australia Bank's Gavin Friend.

Oil prices added to the dour mood, with both main contracts up more than one percent. Brent headed back towards $115 a barrel for the first time since May, while WTI topped $100, after Iran threatened to hit US bases in the region if its military continued to escort ships through the Strait of Hormuz.

Key figures at around 0715 GMT: Tokyo — Nikkei 225: DOWN 0.3 percent at 62,693.16 (close); Hong Kong — Hang Seng Index: UP 1.1 percent at 23,193.02; Shanghai — Composite: UP 0.9 percent at 3,690.48 (close); London — FTSE 100: DOWN 0.2 percent at 10,708.95; West Texas Intermediate: UP 1.5 percent at $100.93 per barrel; Brent North Sea crude: UP 1.3 percent at $114.58 per barrel; Euro/dollar: DOWN at $1.1212; Pound/dollar: DOWN at $1.3390; Dollar/yen: UP at 157.00 yen; Euro/pound: DOWN at 83.76 pence; New York — Dow: FLAT at 52,867.98 (close).

Traders are expected to keep a close watch on oil price movements and Middle East developments, with analysts warning that further escalation could deepen the tech sell-off and reinforce demand for safe-haven assets.

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