Asian Stocks Slide as Shutdown Fears and Tech Bubble Loom

On Friday, October 10th, 2025, Asian stock markets traded mostly in the red as the week came to a close. The trading session was marked by a mix of positive and worrying developments.

In Hong Kong, the Hang Seng Index (HSI) fell 304 points or 1.14%, closing at 26,447. The Shanghai and Shenzhen markets also traded lower, shedding 0.51% and 1.85%, respectively. Japan's Nikkei index was down 470 points or 0.97% at 10:10 AM IST.

However, not all markets were in the red. South Korea's Kospi index jumped 49 points or 1.39% to reach 3,598. This positive performance was driven by news of a Middle East ceasefire and major investments in the artificial intelligence (AI) sector.

Despite the mixed results, investors remained concerned about a possible US government shutdown and the potential for a tech bubble. Experts warned that some companies may now be overvalued, sparking talk of a market correction.

The week also saw some records being set, with gold and Bitcoin hitting new highs. The surge in gold prices, which reached over $4,000 per ounce on Wednesday, was attributed to investors seeking a safe haven. The rise in Bitcoin's value was driven by continued interest and investment in the cryptocurrency.

Investor confidence received a boost after ChatGPT-maker OpenAI signed multi-billion-dollar chip deals with South Korea's Samsung and SK hynix, along with US firm AMD. These deals add to the hundreds of billions already flowing into the AI sector, driving stock prices higher. US chip leader Nvidia's market value also soared past $4 trillion.

However, the looming threat of a US government shutdown continues to weigh on the markets. The shutdown is expected to enter its third week, with little sign of compromise between the Republican and Democratic parties. This uncertainty is likely to persist in the coming weeks, potentially impacting investor sentiment and market performance.