Asian Markets Slide as China Enters Bear Territory and Bitcoin Retreats

Table of Contents

• You might want to know
• Market declines spread across Asia
• Key Insights Table
• Afterwards...

You might want to know

• Why did markets across Asia come under pressure as China’s CSI 300 entered bear market territory?
• How did moves in oil, precious metals, bitcoin, and U.S. Treasury yields shape the broader market picture?

Market declines spread across Asia

Asian stocks fell sharply on Thursday as Chinese equities crossed into bear market territory, technology shares weakened, and higher oil prices added to investor concerns. The declines were broad, reaching major markets in Japan, South Korea, Taiwan, and Hong Kong. At the same time, bitcoin retreated, gold and silver lost ground, and U.S. stock-index futures declined, reflecting a cautious mood across several asset classes.

The CSI 300, which tracks the 300 largest stocks traded in Shenzhen and Shanghai, dropped 2%. That move brought its decline from June’s peak to 20%, a threshold commonly used to describe a bear market. The benchmark’s weakness underscored the scale of the setback in Chinese shares and came amid a fresh retreat in technology stocks.

Losses extended to other regional benchmarks. Japan’s Nikkei 225 fell around 3%, South Korea’s Kospi dropped 3.5%, Taiwan’s benchmark lost 2%, and Hong Kong’s Hang Seng declined 3%. These simultaneous falls indicate that the day’s pressure was not confined to mainland China. Investors were also responding to uncertainty around corporate results, technology spending, and the impact of elevated energy prices.

Chinese technology shares traded in Hong Kong experienced their worst session since President Donald Trump’s April 2025 “Liberation Day” tariff announcement, according to Bloomberg’s David Ingles. Ingles said the technology benchmark had fallen more than 40% from its peak. That decline has almost erased gains made after Beijing’s Sept. 24 stimulus package. Forward valuations had also compressed to roughly 13 times earnings, suggesting that investors were placing a substantially lower valuation on expected profits than they had at the market’s high.

The losses in Chinese technology shares form part of a wider debate about the outlook for technology investment. Mixed third-quarter earnings reports from U.S. companies added to uncertainty about artificial intelligence spending. Tesla (TSLA) fell around 3% after the market closed after cutting its capital-spending forecast, while Meta Platforms (META) raised the lower end of its spending guidance. The differing signals gave investors reasons to reassess how much companies may spend on infrastructure and other technology initiatives, as well as how those investments could affect future financial results.

Cryptocurrency and precious metals also weakened. Bitcoin (BTC), quoted at $84,459.46, gave up its advance above $84,000 and retreated toward $82,000. Gold fell more than 1% to below $4,100 an ounce, while silver dropped over 3.5% to around $55. The simultaneous declines suggest that the day’s selling pressure reached assets that investors may otherwise view as alternatives to equities or traditional currencies. Their price moves, however, do not by themselves establish a single cause or indicate how those markets will perform next.

U.S. equity-index futures also pointed lower, with Nasdaq 100 index futures declining almost 2%. The futures move added to concerns about growth-oriented and technology-related shares, particularly as investors considered the mixed corporate guidance on spending. Taken together with losses in Asian technology stocks, the shift in futures showed that market caution extended beyond the region where the selloff began.

Measures of expected market volatility rose as prices fell. The Cboe Volatility Index, or VIX, jumped 10% to around 18. That level was roughly 30% above September’s low. The increase indicated greater demand for protection against potential market swings, although the index’s level alone cannot determine the direction or size of future price moves.

Oil was a significant part of the market backdrop. WTI crude topped $100 a barrel, while Brent crude climbed above $112, reaching the highest levels since May. Rising oil prices can add to concerns about costs for households and businesses, and they may influence expectations for inflation and economic conditions. In this market session, the advance in crude coincided with losses in equities and other assets, adding another source of uncertainty for investors.

Notably, the stock selloff continued even as Treasury yields eased. Lower yields can tend to make stock-market investments more attractive by reducing the relative return offered by bonds, but that support did not prevent equities from falling. The U.S. 10-year yield stood near 5.077%, below its recent peak around 5.4%. The contrast between easing yields and declining stocks illustrates that markets were weighing several factors at once, including corporate earnings, technology spending, oil prices, and regional economic concerns.

The session therefore brought together several distinct signals: Chinese shares reached a widely recognized bear-market threshold, neighboring Asian markets posted substantial losses, technology benchmarks remained far below their peaks, and major commodities and digital assets retreated. The moves offer a snapshot of heightened risk aversion, but they do not establish whether the declines will continue or whether prices will recover. Subsequent earnings updates, policy developments, and movements in energy markets may affect how investors interpret the selloff.

Key figures from the session included a 2% fall in the CSI 300 and a 20% decline from its June peak, alongside losses of around 3% or more in several major Asian markets. Other notable data points included a more than 40% retreat in the Chinese technology benchmark from its peak, bitcoin’s move back toward $82,000, and WTI crude trading above $100 a barrel.

Disclosure & Policies: CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted principles intended to ensure the integrity, editorial independence, and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish equity-based compensation.

Key Insights Table

Afterwards...

The next phase for markets will depend on how investors interpret corporate earnings and spending plans, particularly in technology and artificial intelligence, alongside developments in oil prices and regional equities. The session’s broad declines show that several sources of uncertainty were affecting sentiment at once. Investors will be watching whether benchmark losses stabilize, whether commodity prices remain elevated, and whether company guidance helps clarify the outlook. These factors may shape market expectations, but their eventual effects remain uncertain.