Asian equities tumbled on Thursday as Chinese stocks slid into bear-market territory, with technology shares leading regional losses and rising oil prices compounding investor concerns.

The CSI 300, which tracks the 300 largest stocks traded in Shenzhen and Shanghai, fell 2%, taking its decline from June's peak to 20% — the threshold commonly used to define a bear market, a level often watched as a marker of a sustained shift in sentiment rather than a routine pullback. Regional benchmarks followed suit: 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 declined 3%, underscoring how widely the retreat extended beyond Chinese listings.

Hong Kong-listed Chinese technology shares suffered their worst session since President Donald Trump's April 2025 “Liberation Day” tariff announcement, according to Bloomberg's David Ingles (@DavidInglesTV on X). The technology benchmark has now fallen more than 40% from its peak, almost erasing the gains that followed Beijing's Sept. 24 stimulus package, with forward valuations compressed to roughly 13 times earnings, Ingles said. The gauge is closely followed as a barometer of sentiment toward China's technology sector, making its swing from post-stimulus highs one of the session's most closely watched developments.

Mixed third-quarter earnings reports from U.S. companies added to the uncertainty surrounding artificial intelligence investment. Tesla (TSLA) fell around 3% in after-hours trading after cutting its capital-spending forecast, while Meta Platforms (META) raised the lower end of its spending guidance. The contrast highlighted how capital-expenditure plans at major technology firms have become a key variable for markets assessing the durability of AI-driven investment.

Bitcoin (BTC) gave up its advance above $84,000 and retreated toward $82,000. Gold fell more than 1% to below $4,100 an ounce, while silver dropped over 3.5% to around $55. Nasdaq 100 index futures declined almost 2%. The declines spanned equities, cryptocurrency and precious metals alike, leaving few major asset classes untouched on the session.

The Cboe Volatility Index, or VIX — a measure of expected U.S. equity volatility derived from options pricing — jumped 10% to around 18, roughly 30% above September's low. Oil added to the pressure: WTI crude topped $100 a barrel and Brent crude climbed above $112 to the highest levels since May.

The equity selloff persisted despite easing Treasury yields, which would tend to make stock-market investments more attractive. The U.S. 10-year yield stood near 5.077%, below its recent peak of around 5.4%. How that divergence between falling borrowing costs and sliding share prices resolves — alongside whether Chinese benchmarks stabilize near bear-market territory, oil's trajectory and the ongoing third-quarter earnings season — remains a focal point for traders assessing risk appetite.

Source: CoinDesk