Alphabet drop hits Asian markets as Japan holds rates

Asian stock markets moved in different directions on Friday following a sharp decline in Alphabet shares that weighed on U.S. trading.

Japan's Nikkei 225 index fell by 2.3% during afternoon trading, closing at 63,155.94. This drop came as the Bank of Japan concluded its two-day monetary policy meeting. The central bank decided to leave its benchmark interest rate at 1.25%, a decision analysts had predicted because the bank raised the rate just last month.

The U.S. dollar strengthened slightly against the Japanese yen, rising to 157.67 yen from 157.65. This move occurred despite ongoing pressure from the U.S. for Japan to raise rates to support the weakening yen. In European currency markets, the euro increased to $1.1186, up from $1.1181.

Other Asian indices showed mixed results. Australia's S&P/ASX 200 gained 0.2% to reach 8,908.10. In South Korea, the Kospi index dropped nearly 4% to 5,701.71, driven by declines in shares of major chipmakers SK Hynix and Samsung Electronics. Hong Kong's Hang Seng index added 1.7% to finish at 23,359.06, while the Shanghai Composite lost 0.4% to stand at 3,636.60.

The volatility in Asian markets mirrored the previous session in New York, where the S&P 500 recorded its first loss in four days. The index fell 23.59 points to 7,720.39 on Thursday. The Nasdaq composite dropped 365.13 points to 26,184.72, and the Dow Jones Industrial Average lost 132.54 points to 52,342.56. Alphabet Class A shares suffered their worst day since beginning trade over 20 years ago, falling 12.6%.

Investors in the bond market saw the yield on the 10-year Treasury fall to 4.94% from 5.05% late Wednesday. This pullback follows a period where yields topped 5.30% earlier this month, reaching their highest level since 2002. In energy markets, benchmark U.S. crude oil prices rose by 1.15% to $103.17 per barrel. Brent crude, the global standard, increased by 1.05% to $116.09 per barrel.