A mixed sentiment gripped the Asia-Pacific markets on Tuesday, reflecting a continuation of the tech sell-off triggered by anxiety surrounding the artificial intelligence sector. This downturn follows a shaky performance on Wall Street, where major technology stocks faced notable declines.
In Tuesday’s trading, shares of Nvidia fell by over 1%, erasing a portion of the gains made in the previous week, where they had surged more than 5%. Other tech giants also saw losses, with Palantir Technologies, Meta Platforms, and Oracle joining Nvidia in the downward trend.
Japan’s Nikkei 225 index fell by 0.37%, settling at 50,339.48, while the broader Topix index dipped 0.51% to conclude trading at 3,408.97. The drop was further exacerbated by a near 2% decline in trading for SoftBank Group Corp. This slump followed the company’s announcement of a significant $4 billion acquisition of DigitalBridge, a data center investment firm, aiming to bolster its strategy in artificial intelligence. SoftBank’s CEO Masayoshi Son expressed optimism about the deal, stating it would “strengthen the foundation for next-generation AI data centers” as part of SoftBank’s vision to establish itself as a leader in Artificial Super Intelligence.
In South Korea, the Kospi index contracted by 0.15% to close at 4,214.17, while the tech-heavy Kosdaq index fell further by 0.76% to end at 925.47, marking the most considerable losses across Asia.
Yet, contrary to the trends in the region, Hong Kong’s Hang Seng index saw a slight increase of 0.7% in the final trading hours, and the CSI 300 in mainland China gained 0.26%, closing at 4,651.28. Investors appeared to be eyeing the recent military exercises conducted by China around Taiwan, prompting caution in the markets. Taiwan’s President Lai Ching-te addressed the situation, affirming that Taiwan would act responsibly to avoid escalation while criticizing China’s ongoing military pressure.
In Taiwan, the Weighted Index experienced a minor decline of 0.36%, finishing at 28,707.13. Major tech companies in Taiwan, including Taiwan Semiconductor Manufacturing Company and Hon Hai, recorded losses of approximately 0.65% and 1.3%, respectively.
Meanwhile, Australia’s S&P/ASX 200 index slipped 0.1% to 8,717.1, after an initial positive performance earlier in the session. U.S. futures showed little movement during the early hours of Asian trading. The previous day in the U.S., the S&P 500 decreased by 0.35%, the Nasdaq Composite fell by 0.50%, and the Dow Jones Industrial Average retreated by 0.51%.
Looking ahead, traders are expected to digest key market data scheduled for release, including home price information in the U.S. at 9 a.m. ET and the Federal Reserve’s December meeting minutes later in the day.
