MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 2.2% to bring its weekly loss to 3.5%, the most substantial since early April

Asian shares extended a rout on Friday, with investors dumping risk assets even after Nvidia’s high earnings.

On Friday, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 2.2% to bring its weekly loss to 3.5%, the most substantial since early April. Nikkei declined 2.2% and was down 3.3% for the week.

Shares in Taiwan shed 3.4% while South Korea’s market slumped 3.7%.

Chinese shares also took a beating, with the CSI 300 and Hong Kong’s Hang Seng index both down 1.5%.

On Friday, Japan’s cabinet, led by Prime Minister Sanae Takaichi, approved a 21.3 trillion yen ($135.5 billion) economic stimulus package.

Concerns about growing fiscal expansion have weighed on the yen, which was struggling at 157.24 per U.S. dollar, just above a 10-month low. The rapid depreciation in the yen – down 6% this quarter – has raised the risk of an imminent government intervention.

Meanwhile, European markets are bracing for a sharply lower open, with EURO STOXX 50 futures down 1.4%. U.S. stock futures were up 0.2% in Asia trading.

U.S. stocks dropped overnight on jitters over inflated tech stock prices – despite Nvidia’s stellar forecasts – resulting in the Nasdaq’s widest one-day swing since April 9 when the Trump administration’s tariffs spooked markets.

Data showed the U.S. economy added far more jobs than expected in September, but a rise in the unemployment rate and downward revisions to prior months painted a murky picture for the country’s central bank as it considers its interest rates next month.

Treasury yields dropped as futures moved to imply a 40% probability of a U.S. rate cut in December, up from 30% a day earlier, but with the next jobs report only available after the central bank meeting, investors were unconvinced that easing would come next month.