Asian tech sell-off weighs on stocks as gold climbs on valuation fears
Asian tech sell-off weighs on stocks as gold climbs on valuation fears
Asian markets fall as Wall Street tech rout prompts rotation; Kospi leads losses while gold rebounds and futures hint at easing selling pressure.
Asian stocks drifted lower for a second straight session after Wall Street traders pulled away from technology shares and rotated into a broader mix of equities amid concerns about high valuations and spending. The MSCI Asia Pacific Index fell about 0.3% at the open, with South Korea’s Kospi Index leading losses, dropping around 1.6%. The move comes after the Nasdaq 100 marked its worst two-day decline since October, briefly breaking below its 100-day moving average—a level some technicians view as a potential signal for more downside. Futures contracts for major U.S. indices were higher in early trading, up roughly 0.3%, suggesting selling pressure may be easing for now.
Gold and silver continued their rebound from a historic plunge, lending some relief to cautious investors. Bitcoin hovered near $73,000, even as traders speculated on possible moves below $65,000. On the currency front, the yen slipped further, trading around 156.93 per dollar ahead of weekend elections in Japan. The Bloomberg Dollar Spot Index held its recent strength as the dollar gains persisted.
Investors weighed concerns that AI-driven innovations could cannibalize traditional software models, contributing to higher valuations and increased spending commitments by tech giants. Alphabet Inc. came under pressure after outlining an ambitious capital expenditure plan, while Arm Holdings plc faced weakness following a disappointing sales forecast. Qualcomm Inc. also offered a cautious revenue outlook, underscoring the fragility of near-term tech demand.
Market observers noted a potential shift in sentiment, with some seeing a glass half full as broad market participation improves despite tech stock volatility. Others warned that elevated valuations and AI-driven disruption remain ongoing risks, suggesting investors may need to brace for choppier sessions as they digest earnings, policy signals, and macro data.
In this environment, many investors appear to be rotating away from a narrow tech focus toward a wider mix of sectors, seeking steadier earnings visibility while keeping a lookout for signs of valuation normalization. The overall tone remains cautious but not despondent, implying that a measured, diversified approach could help weather near-term volatility.
