Il Nuovo Postiglione - Asian markets fluctuate after healthy week of tech gains

After surging for the past two years on a rush into all things linked to artificial intelligence, Wall Street's Magnificent Seven tech titans have been slow out of the blocks this year amid concerns about extended valuations and profitability.

Worries about the impact of new tools that many warn pose a risk to a range of companies were compounded by a report on Sunday that signified parts of the global economy that could be at risk from the new gadgets, including credit card and food delivery firms.

That uncertainty has seen a shift from "downstream" companies that run apps and software to "upstream" firms such as chipmakers, many of which are based in Asia.

That was highlighted this week by another Wall Street sell-off, despite Nvidia reporting quarterly profits more than doubled, projecting more strong growth for the coming period.

Analysts said the losses showed firms needed to far exceed even elevated forecasts, making it even harder to please investors who have been piling into tech in recent years.

"Market expectations were already very elevated and part of the positive results had been priced in," said City Index's Julian Pineda.

"There are also concerns related to stretched valuations and Nvidia’s dependence on capital spending by large technology companies investing in AI infrastructure.

"If the pace of AI investment moderates due to cost optimisation efforts, it could indirectly affect Nvidia's growth outlook."

Most of Wall Street fell, with the Nasdaq shedding more than one percent.

Asia was mixed, with the Supreme Court's decision last Friday to slap down many of US President Donald Trump's tariffs seen largely benefiting regional economies.

Hong Kong, Singapore and Wellington edged up, while Sydney and Shanghai shifted between gains and losses.

But Seoul sank more than one percent, having chalked up gains of around 8.5 percent this week thanks to a surge in market heavyweights Samsung and SK hynix.

Tokyo, Manila and Jakarta also fell.

The yen extended a minor recovery against the dollar after a top Bank of Japan board member again urged officials to continue hiking interest rates.

However, the case for a pause was boosted by data showing Tokyo's inflation -- seen as a barometer for the country -- cooled last month.

The currency came under pressure this week after Prime Minister Sanae Takaichi nominated two academics to the BoJ board who are considered policy doves, days after reports said she had told its boss Kazuo Ueda of her concern about tightening further.

Oil prices slipped after mediators said Iran and the United States made "significant progress" in nuclear talks Thursday as they look to avert a war in the crude-rich Middle East. The two sides agreed to further discussions next week in Austria.

The Oman-mediated negotiations follow repeated threats from Trump to strike Tehran, with the US president last Thursday giving it 15 days to reach a deal.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: DOWN 0.4 percent at 58,528.09 (break)

Hong Kong - Hang Seng Index: UP 0.2 percent at 26,427.58

Shanghai - Composite: FLAT at 4,146.82

Dollar/yen: DOWN at 155.85 yen from 156.11 yen on Thursday

Euro/dollar: DOWN at $1.1796 from $1.1799

Pound/dollar: DOWN at $1.3484 from $1.3489

Euro/pound: UP at 87.49 pence from 87.47 pence

West Texas Intermediate: DOWN 0.3 percent at $65.02 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $70.54 per barrel

New York - Dow: UP less than 0.1 percent at 49,499.20 (close)

London - FTSE 100: UP 0.4 percent at 10,846.70 (close)

M.Lombardi--INP