MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2%

Asian stocks dropped towards the end of the week on a shaky footing on Friday, while commodity markets took a breather after their recent move higher.

Markets remain on track for one of their best years in a decade amid a surge of orders across the region to meet booming demand for AI-linked technology hardware.

MSCI’s broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses, last down 0.2% as its gains for the week hung in the balance.

Shares in Hong Kong were down the most, off 1.1%, while the Australian market slipped 0.1% against a backdrop of volatile commodity markets. In South Korea, stocks soared 1.7%, extending gains for Asia’s best-performing index.

The Nikkei stock index dropped 0.7%, taking a step back after sharp gains this week including on Thursday when it rose to an all-time closing high.

Data earlier in the day showed wholesale prices rose 2.7% in the year to September, in a sign of persistent cost pressure that will keep markets braced for a possible rate hike by the Bank of Japan when it meets on October 30.

The dollar slipped 0.1% against the yen to 152.96, around the weakest level for the Japanese currency since February, after the new ruling party leader Sanae Takaichi said on Thursday that the central bank is responsible for setting monetary policy but that any decision it makes must align with the government’s goal.

Chinese stocks tumbled following declines for ETFs tracking large-caps on the U.S. stock market overnight after Beijing expanded its rare earths export controls on Thursday, tightening control over the sector ahead of talks between Presidents Xi Jinping and Trump.

Gold edged down, extending declines after snapping a four-day winning streak on Thursday, shortly after breaching the $4,000 mark for the first time and with evidence of the ebullience spilling across into other precious metals.