After a negative outlook on

Baidu.com

(BIDU) - Get Report

sent U.S. markets into the red Thursday, wider-spread negativity over the technology sector halted Asian markets' recent run of record highs.

Concern over a bubble in Asian tech shares sent all of the region's indexes into the red Friday. The Hang Seng lost 1% to 28,838.37 and the Nikkei 225 fell 0.7% to 17.331.17. The Shanghai Composite Index closed down 0.2% to 5,903.26, clawing back after falling more than 2.5% at the open.

The losses came after the Asian indexes have been hitting new highs all week, fueled by Chinese strength. Castor Pang, a buy-side strategist for Sun Hung Kai in Hong Kong, says Internet stocks -- especially Baidu -- have now put downward pressure on the markets.

"This is the right time for a correction, especially for China-related tech, which has been overpriced for the last half year," Pang says.

Tech shares accounted for Asia's biggest losses Friday. In Tokyo,

Sony

(SNE) - Get Report

slid 4.3% to 5,530 yen, while Nintendo lost 2.6% to 67,400 yen.

Nintendo is the world's largest maker of handheld game players, and Sony is the fourth-largest global manufacturer of mobile phones, according to Bloomberg, making them a useful proxy for money managers tracking Asia tech.

Mobile stocks in China were off sharply, with

China Mobile

(CHL) - Get Report

and

China Unicom

(CHU) - Get Report

trading down between 1.3% and 2.5%, both tracking their NYSE American Depositary Receipt losses Thursday.

Investors expressed little surprise at the broad selloff in Asia tech stocks. Since March, the tech sector has been the second-biggest gainer in the region after energy.

So far this year, ADRs in

China Telecom

(CHA) - Get Report

TST Recommends

have gained 137%, while China Mobile and China Unicom have fared similarly, surviving the summer's market clawback intact.

Chinese Internet stocks

Netease

(NTES) - Get Report

and

Sina

(SINA) - Get Report

have seen their market caps rise by 61% and 125% to $2.38 billion and $2.79 billion, respectively, following in the footprints of Baidu's 338% rise before Thursday's fall.

Pang believes that tech shares will continue to suffer a short-tem correction in Asia, but says the stocks will see further gains after the next quarter.

"Tech stocks have a cycle, and that cycle will be due another upswing again after this correction -- especially those companies that serve China market," he says. "Market share there just continues to increase and earnings ability is strong. Penetration of personal computers in China is increasingly substantially."

In addition, digital cable in China is growing at an annual growth rate of 95%, according to Morgan Stanley. That growth has meant gains of 25% in ADRs of

China Digital TV Holding

(STV)

, which plummeted 16.5% on the NYSE Thursday.

In particular, Pang likes

Packard Bell

, which

Gateway

( GTW)a greed to buy Tuesday for an undisclosed sum. Gateway itself is set to be acquired by Taiwan's

Acer

.

Daniel M. Harrison is a business journalist specialising in European and emerging markets, in particular Asia. He has an MBA from BI, Norway and a blog at

www.theglobalperspective.biz

. He lives in New York.