Asia Market Open: Crypto Extends Losses, Global Stocks Weaken on Economic Jitters

Good morning, Asia. Here’s what’s moving before the bell.

Markets opened Friday to a risk-off tone across Asia, with crypto prices and major regional equity benchmarks slipping as investors grew more cautious about the global economic outlook.

Bitcoin fell alongside broader digital assets, extending this week’s losses after data pointed to weakening demand and slowing treasury inflows from large holders.

Total crypto market cap dropped about 2% in early trading, mirroring sentiment in equities.

Market snapshot

• Bitcoin: $101,545, down 1.5%
• Ether: $3,320, down 2.5%
• XRP: $2.21, down 5.1%
• Total crypto market cap: $3.47 trillion, down 1.9%

Regional Markets Track US Losses After Sharp Selloff in AI Shares

In Asia, Japan’s Nikkei 225 fell 1.75%, while Hong Kong’s Hang Seng Index dropped 0.74%. The Shenzhen Component lost 0.76%, and the Shanghai Composite eased 0.22%.

New Zealand’s Dow Jones NZ edged up 0.20% to 360.52, the only gainer among major indexes.

These declines followed Wall Street’s overnight retreat. The Dow Jones Industrial Average fell 0.84%, the S&P 500 slid 1.12% and the Nasdaq Composite lost 1.9%, weighed down by a sharp pullback in technology and artificial intelligence-linked stocks that had fueled recent rallies.

The selloff this week came as earnings season wound down and investors turned to private data to gauge economic health amid the ongoing US government shutdown.

The latest figures from Challenger, Gray & Christmas showed companies announced 153,074 job cuts in October, nearly triple last year’s total for the same month, driven mainly by the technology and warehousing sectors.

Institutional Appetite for Bitcoin Eases, ETF Outflows Deepen Market Reset

Thomas Perfumo, global economist at Kraken, said demand from digital asset treasuries such as MicroStrategy, which had supported crypto through the summer, has slowed noticeably.

“Crypto ETFs have also experienced significant outflows, despite skewing bullish during prior months of choppy price action,” he added.

“While the market was stabilizing after the Oct. 10 liquidation event, this latest ‘reset’ event certainly reduced short-term risk tolerance further. This is evident by the continued retreat in altcoins in favor of assets like Bitcoin, whose market cap dominance ticked higher yet again.”

Investors Eye Fed Support as Market Copes With Data Gaps and Valuation Strain

Market confidence remains shaky amid the record-long US government shutdown, which has suspended official data releases such as the non-farm payrolls report. Private indicators have filled the gap, but they paint a mixed picture of growth and labor momentum.

Treasury yields held steady, while the dollar eased slightly against major peers after weak labor data reinforced bets on another Federal Reserve rate cut this year. The euro rose 0.49% to $1.1547, and the dollar index slipped 0.42% to 99.70.

MSCI’s global equity gauge fell 0.59% to 992.00, extending its weekly losses as traders weighed stretched valuations and uncertainty over fiscal and monetary policy.

On Wall Street, technology shares led the retreat, with the S&P 500 tech index down 2%. Analysts said the correction reflects profit-taking after months of gains tied to artificial intelligence optimism.

Despite the pullback, analysts say the market tone remains orderly. Investors are watching for signs of liquidity stress in money markets, and traders expect the Fed to step in if funding pressures intensify.

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