Asian shares sink, with Tokyo down nearly 5% as slumping AI stocks drag world markets lower

Bangkok, Jul 17 (AP) Asian shares skidded Friday, with Tokyo's Nikkei 225 down 5 per cent as heavy selling of computer chipmakers and other AI-related shares dragged markets lower. South Korean markets were closed Friday, but shares in Taiwan also fell more than 5 per cent. Stocks related to artificial intelligence have been under pressure for weeks because of worries that their prices have shot too high and that voracious demand for computer memory and processors may not be sustainable if AI ends up not producing as much profit and productivity as promised. Oil prices surged as fighting in the Middle East intensified, while US futures slipped. The Nikkei lost 5.8 per cent to 62,945.97, while the Hang Seng in Hong Kong shed 2 per cent to 24,514.29. The Shanghai Composite index was 1.6 per cent lower at 3,818.59. In Australia, the S&P/ASX 200 declined 0.7 per cent to 8,775.70. On Thursday, the S&P 500 fell 0.5 per cent even though nearly three out of every four stocks in the index rose after more of the country's biggest companies reported better earnings for the latest quarter than analysts expected. The Dow Jones Industrial Average dipped 0.2 per cent, and the Nasdaq composite lost 1.5 per cent. Nvidia fell 2.4 per cent, making it the heaviest weight on the index. Other stocks that have benefited from strong demand for AI also sank, giving back some of their stellar gains. Micron Technology fell 5.6 per cent to shave its gain for the year so far below 199 per cent. SanDisk fell 12.6 per cent but is nevertheless up 494 per cent for the year. Western Digital sank 9.2 per cent but is still up 171 per cent for the year. Oil prices are near their highest level in a month because of worries that the war with Iran will keep oil tankers out of the Strait of Hormuz and block shipments of crude from the Persian Gulf to customers worldwide. The price for a barrel of Brent crude, the international standard, rose 1.1 per cent to USD 85.13 per barrel. US benchmark crude oil was up 1.3 per cent at USD 79.95 per barrel. (AP) SCY SCY