Technology shares in Japan and South Korea led the declines, while investor focus for the day was on Chinese trade figures for October

Asian stock markets dropped on Friday, heading for steep weekly losses, as a global tech sell-off deepened amid valuation concerns, while renewed China-U.S. tensions further rattled investors.

Technology shares in Japan and South Korea led the declines, while investor focus for the day was on Chinese trade figures for October.

Nikkei 225 slumped 2.3% on Friday, on track to lose nearly 5% this week, dragged lower by declines in technology-related stocks.

SoftBank Group shares plunged 9% on Friday, while chipmaker Advantest Corp pulled back more than 7%.

KOSPI shed nearly 3%, heading for an over 4% weekly decline. Chipmaking giants Samsung Electronics and SK Hynix extended losses.

The moves come amid concerns that lofty valuations in the semiconductor and AI sectors may be unsustainable.

Investor caution was compounded by recent warnings from U.S. bank and investment executives, who flagged the risk of a correction in equities, stoking fears of a market bubble.

Elsewhere, S&P/ASX 200 index edged 0.6% lower, set to drop more than 1% for the week.

Data on Friday showed that Chinese exports dropped unexpectedly in October after a sharp increase in the previous month, missing forecasts of a modest rise.

Imports also weakened, leading to a decline in China’s trade balance, suggesting persistent trade pressures and weak domestic demand.

China’s blue chip Shanghai Shenzhen CSI 300 and the Shanghai Composite edged 0.2% lower each.

Hong Kong’s Hang Seng index declined 1.2%, with Hang Seng TECH sub-index dropping more than 2%.

Meanwhile, U.S. stock market saw heavy losses overnight, extending Tuesday’s risk-off mood, while futures tied to them were largely unchanged.