Asian equity markets mostly declined on Friday, tracking sharp losses on Wall Street as investors grew increasingly skeptical that massive spending on artificial intelligence will generate sufficient returns.

Technology-heavy markets in Japan and South Korea led regional losses as major chipmakers came under pressure.

Sentiment was further weighed by Brent crude climbing above $100 a barrel amid escalating Middle East tensions, fueling inflation concerns and reinforcing expectations of tighter US monetary policy.

Investors also assessed fresh US tariffs of 10%–12.5% on imports from most major trading partners.