Asian markets sink again as tech sell-off reignites on Wall Street
Asian markets fell sharply on Wednesday as a tech sell-off resurged on Wall Street, with South Korea’s Kospi dropping 6.2% and chipmakers like SK Hynix and Samsung Electronics declining amid investor concerns over stretched valuations ahead of SpaceX’s IPO. The Nasdaq also closed lower at 0.9% after tumbling 2.2% earlier, with Dell and Intel losing 4.7% and 2.1% respectively, while analysts linked the volatility to repositioning ahead of SpaceX’s listing and fears over AI-driven valuations.
Asian markets suffered steep losses on Wednesday as a tech sell-off reignited on Wall Street, dragging down indices across the region. South Korea’s Kospi plunged 6.2% to 7,609.4 points, with Samsung Electronics dropping 5.5% and SK Hynix falling 8.5% despite recent Nvidia deals. Japan’s Nikkei 225 declined 1.8%, while Taiwan’s TAIEX fell 3.3%, reflecting exposure to US AI-driven demand. Even markets less tied to tech, like India’s Nifty 50, dipped 0.6%, and China’s Shanghai Composite slipped 0.4%. The Nasdaq tumbled 2.2% by midday in New York before closing at a 0.9% loss, with tech stocks like Dell falling 4.7% and Intel losing 2.1% after earlier declines. The S&P 500 dipped 0.2%, as real estate and healthcare gains offset broader losses. Analysts attributed the sell-off to investors repositioning ahead of SpaceX’s upcoming IPO, expected to raise up to $68 billion but facing valuation concerns. The rotation out of tech stocks began Friday, shifting toward utilities and consumer staples. OpenAI and Anthropic have also filed for IPOs, targeting $1 trillion valuations, intensifying competition. Deutsche Bank compared current volatility to swings between 1999’s AI exuberance and 2000’s tech crash fears. SpaceX’s listing on Friday is seen as a catalyst for further market jitters, with investors wary of overvalued AI stocks. Susannah Streeter of Wealth Club noted that crowded AI valuations and SpaceX’s high-profile IPO are amplifying uncertainty. The sell-off underscores broader concerns about tech sector fundamentals amid aggressive growth expectations.
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