Asian stock markets plunged on Thursday as technology shares came under pressure following mixed U.S. corporate earnings, while a sharp rise in oil prices heightened concerns about the global economic outlook. Chinese equities entered bear-market territory, deepening the sell-off across the region.

China’s CSI 300 index fell 2%, taking its decline from the June peak to 20%. The benchmark tracks 300 major companies listed in Shanghai and Shenzhen. Elsewhere, Japan’s Nikkei 225 dropped around 3%, South Korea’s Kospi lost 3.5%, Taiwan’s benchmark slipped 2%, and Hong Kong’s Hang Seng Index fell 3%.

Hong Kong-listed Chinese technology stocks recorded their steepest one-day decline since U.S. President Donald Trump announced his “Liberation Day” tariffs in April 2025, according to Bloomberg’s David Ingles.

The sector’s technology index has dropped more than 40% from its peak, almost eliminating the gains made after Beijing introduced its stimulus package on Sept. 24. Forward price-to-earnings valuations have also fallen to approximately 13 times earnings, Ingles said.

U.S. Earnings Put Technology Stocks Under Pressure

Mixed third-quarter earnings from American companies added to uncertainty surrounding artificial intelligence investment. Tesla shares declined about 3% in after-hours trading after the company reduced its capital-spending forecast. Meta Platforms rose after raising the lower end of its projected spending range, but the broader technology outlook remained uncertain.

The sell-off spread into other asset classes. Bitcoin gave back its gains above $84,000 and slipped toward $82,000. Gold declined more than 1% to below $4,100 per ounce, while silver fell over 3.5% to around $55. Nasdaq 100 futures dropped nearly 2%.

Meanwhile, the Cboe Volatility Index (VIX) climbed 10% to approximately 18, putting it around 30% above its September low as investor anxiety increased.

Oil Prices Add to Market Uncertainty

Energy markets moved higher as concerns about supply and geopolitical risks persisted. West Texas Intermediate crude surpassed $100 a barrel, while Brent crude rose above $112, reaching its highest level since May.

Equities continued to weaken despite a decline in U.S. Treasury yields, which would typically make stocks more attractive relative to bonds. The 10-year Treasury yield stood near 5.077%, below its recent high of around 5.4%.

The combination of falling technology shares, questions about AI spending and rising oil prices continued to weigh on global investor sentiment.