South Korea’s benchmark Kospi index surrendered its gains, declining over 6% on Friday, after reaching a new record high. This downturn was primarily influenced by major technology stocks, coinciding with a wider downturn across Asia-Pacific markets. The Kospi index concluded the trading day at 7,493.18, after surpassing the 8,000 mark earlier in the session. The small-cap Kosdaq experienced a decline exceeding 5%, concluding at 1,129.82. The recent decline comes on the heels of Kospi’s unprecedented performance, prompting apprehensions regarding concentration risks, especially within the realm of artificial intelligence equities. According to Manulife Investment Management, Samsung Electronics and SK Hynix collectively account for a historic 42.2% of the Kospi.

Samsung Electronics experienced a decline of 8.6% in its share price following the announcement from its labor union regarding an impending 18-day strike set to commence on May 21, which will involve over 45,000 workers. This decision comes despite the company’s offer to resume wage negotiations without any preconditions. The union expressed its readiness to re-engage in negotiations following June 7. SK Hynix experienced a decline of 7.6% in its share value. Other Asian markets experienced declines as investors monitored the ongoing high-stakes discussions between U.S. President Donald Trump and Chinese President Xi Jinping for a second consecutive day. Trump departed Beijing on Friday following a two-day summit, which also featured a delegation of American business leaders, including Tesla CEO Elon Musk and Nvidia chief Jensen Huang.

Japan’s Nikkei 225 experienced a decline of 2%, settling at 61,409.29, while the Topix recorded a loss of 0.39%, closing at 3,863.97. In Australia, the S&P/ASX 200 decreased by 0.11%, reaching a level of 8,630.8. Hong Kong’s Hang Seng index experienced a decline of 1.6% in its final trading hour, whereas mainland China’s CSI 300 decreased by 1.12%, settling at 4,859.59. Precious metals experienced a sell-off, as spot gold prices declined by 1.43% to $4,583.02 per ounce, while silver prices dropped more than 5% to $79.07 per ounce. Xi cautioned Trump on Thursday that Washington and Beijing might encounter “clashes and even conflicts” if the delicate matter of Taiwan independence is not managed properly. Failure to handle the matter “properly” could place “the entire relationship in great jeopardy,” as stated by Xi.

U.S. stock futures exhibited minimal variation on Thursday night. Dow futures experienced a decline of 10 points, representing a decrease of 0.02%. S&P 500 futures experienced a slight decline of 0.02%, while Nasdaq 100 futures saw a modest increase of 0.06%. Overnight in the U.S., the Dow Jones Industrial Average regained the 50,000 mark following robust earnings reported by Cisco Systems. The 30-stock index increased by 370.26 points, representing a rise of 0.75%, concluding at 50,063.46. The S&P 500 experienced an increase of 0.77%, concluding the session at 7,501.24, whereas the Nasdaq Composite saw a rise of 0.88%, finishing at 26,635.22. The two indexes achieved new all-time intraday highs and recorded their highest closing values.