Australia's ASX200 rose at the open, while Japan's N225 and Hong Kong's HSI futures slipped, reflecting ongoing investor concerns over semiconductor and AI-related equities after a sharp pullback on Wall Street. The divergence underscores shifting sentiment in global tech markets.
- ASX200 rose 0.4% at the open, while N225 and HSI futures fell 0.6% and 0.8% respectively
- NVDA dropped 5.3% and AMD declined 4.1% on Wall Street, fueling global tech selloff
- AI and semiconductor stocks are under pressure as profit-taking intensifies
- Market divergence reflects differing domestic economic dynamics and sector exposure
- Investors are focusing on earnings guidance and central bank signals in the coming days
- Cross-market correlation remains tight, particularly among AI-related equities
Asia-Pacific markets opened on a mixed note Tuesday, with Australia leading gains while Japan and Hong Kong futures signaled caution. The ASX200 climbed 0.4% at the open, supported by gains in financial and energy stocks. In contrast, Japan's N225 futures declined 0.6%, and Hong Kong's HSI futures dipped 0.8%, driven by renewed profit-taking in technology and semiconductor stocks. The broader trend follows a sharp correction in U.S. tech equities, where Nvidia (NVDA) dropped 5.3% and AMD shed 4.1% in late trading, triggering a selloff across AI-focused names. This Wall Street sell-off has rippled into Asia, particularly affecting firms with heavy exposure to AI infrastructure and chip demand. The Nasdaq Composite's 1.2% drop on Monday intensified concerns about valuation bubbles in the sector. Investors are reassessing the sustainability of AI-driven earnings growth, especially after NVDA’s latest quarterly guidance hinted at slower data center spending. The pullback has weighed on regional tech indices, with Hong Kong-listed semiconductor firms seeing double-digit declines in pre-market trading. Meanwhile, the ASX200’s strength was buoyed by gains in gold miners and domestic financials, which outperformed amid weak U.S. dollar momentum. The mixed reaction highlights growing regional divergence in market sentiment, with Australia’s economy showing resilience amid global volatility. Traders are now monitoring upcoming earnings from major tech players and central bank signals from the RBA and BoJ for directional cues.