San Francisco Frontiers - European stocks fall after tech-fuelled Asia rout

A blockbuster earnings report from chip bellwether Nvidia on Wednesday seemed to settle nerves that vast investments in the artificial intelligence sector may have been overdone.

But the euphoria was short-lived as warnings grew that the tech-led rally across equities -- which has seen several markets hit records highs and companies clock eye-watering capitalisations -- may have run its course.

Adding to unease was mixed US jobs data Thursday that added to expectations that the Federal Reserve could decide against cutting interest rates in December.

"European markets are showing their relative resilience" Friday compared to sharper falls on tech-heavy indices in Asia, noted Joshua Mahony, chief market analyst at trading group Scope Markets.

The rush from risk assets saw bitcoin hit a seven-month low at $81,569.79 -- extending a sell-off suffered since its record high above $126,200 last month.

"The price action across markets has been prolific, and we've seen some truly impressive reversals in risk assets," said analyst Chris Weston at broker Pepperstone.

"Sentiment in so many markets remains highly challenged, and we've seen new evidence that managers are dumping their 2025 winners -- raising expectations that the path of least resistance is for risk to trade lower in the near-term," he added.

The yen held gains after Japanese Prime Minister Sanae Takaichi said her cabinet had approved a 21.3-trillion yen ($135-billion) stimulus package aimed at easing the pain of inflation on households and firms.

However, there are worries that the spending plan will add to Japan's already colossal debt and has pushed government bond yields to record highs, fanning concerns about the country's fiscal state.

The Japanese currency had fallen this week to the lowest level against the dollar since January.

- Key figures at around 1130 GMT -

London - FTSE 100: DOWN 0.3 percent at 9,499.73 points

Paris - CAC 40: DOWN 0.2 percent at 7,964.02

Frankfurt - DAX: DOWN 0.6 percent at 23,141.68

Tokyo - Nikkei 225: DOWN 2.4 percent at 48,625.88 (close)

Hong Kong - Hang Seng Index: DOWN 2.4 percent at 25,220.02 (close)

Shanghai - Composite: DOWN 2.5 percent at 3,834.89 (close)

New York - Dow: DOWN 0.8 percent at 45,752.26 (close)

Dollar/yen: DOWN at 156.77 yen from 157.55 yen on Thursday

Euro/dollar: DOWN at $1.1522 from $1.1525

Pound/dollar: DOWN at $1.3058 from $1.3070

Euro/pound: UP at 88.21 from 88.18 pence

Brent North Sea Crude: DOWN 1.5 percent at $62.42 per barrel

West Texas Intermediate: DOWN 1.8 percent at $57.92 per barrel

W.Thompson--SFF