Asian technology shares fell on Tuesday as investors assessed fresh pressure on the artificial intelligence trade ahead of major US corporate earnings. South Korea’s Kospi Index dropped 3.9%, while chipmaker SK Hynix headed toward its lowest closing level since April.
The MSCI Asia Pacific Index lost 1.4%, reversing the direction of Monday’s technology-led gains on Wall Street. Nasdaq 100 futures also weakened, and the dollar slipped against major currencies as traders weighed higher financing costs and rising oil prices.
Bloomberg reported that the pullback followed a brief US technology recovery that failed to lift the wider stock market. Upcoming results from major companies now offer a test of investor confidence in AI spending and the demand supporting semiconductor shares.
South Korea bore the sharpest losses as chip shares extended their retreat. The local market serves as a key gauge of investor appetite for companies linked to artificial intelligence infrastructure. At the same time, data-center company Elice plunged as much as 33% during its Seoul trading debut.
Elsewhere, Japan’s Topix fell 1.5%, Hong Kong’s Hang Seng declined 1.2%, and the Shanghai Composite lost 0.6%. The MSCI Emerging Markets Index also dropped 1.2%, while Euro Stoxx 50 futures indicated a 0.7% decline at the European open.
The broad regional weakness contrasted with Monday’s US trading. The Philadelphia Semiconductor Index gained 1.6%, ending an eight-session losing streak, its longest since 2008. The advance helped the Nasdaq 100 recover after its weakest week since April 2025’s tariff-related turmoil.
Still, the recovery remained concentrated in technology. Roughly 65% of S&P 500 members finished Monday lower, according to the market report. That imbalance showed how gains among a small group of stocks differed from conditions across the wider market.
Investors now face several earnings announcements that could reshape expectations for technology companies. Netflix reports Tuesday, followed Wednesday by Tesla, Meta Platforms and IBM. Their updates arrive after heavy AI spending and rising borrowing costs unsettled technology shares.
Can the coming earnings reports sustain confidence in the AI investment boom? The question follows fresh concern about financing large computing projects. In Asia, SoftBank’s credit-default swap spreads rose to their highest level in nearly four years amid funding concerns and talk of a major acquisition.
Meanwhile, Nscale entered talks over a reported USD 45 billion computing arrangement with Anthropic. The discussions showed the scale of proposed infrastructure commitments even as investors reassessed borrowing costs and the financial outlook for AI-related businesses.
Treasury markets reflected that pressure. The US 10-year yield eased two basis points to 5.12% after Monday’s rise, when reduced demand for safer assets pushed yields higher. Japan’s 10-year yield climbed to 2.920%, while Australia’s advanced to 5.25%.
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Energy prices added another concern. Brent crude traded around USD 110.20 a barrel as investors considered possible further Iranian attacks near the Strait of Hormuz and continued oil shipments from the Persian Gulf. West Texas Intermediate climbed to USD 104.11. Higher oil prices added to investor concerns about persistent global inflation.
Despite weaker stocks, the dollar declined against all Group-of-10 currencies. The Bloomberg Dollar Spot Index slipped 0.2%, while the euro rose to USD 1.1231. Sterling also strengthened, and the yen gained against the US currency.
French political tensions complicated Europe’s outlook. Weekend protests over living costs led to violence and property damage, prompting tighter security and government support for businesses. French bonds declined as fiscal pressures limited the government’s room for additional spending.
Gold fell to about USD 4,125.77 an ounce. In digital assets, Bitcoin held near USD 81,858.81, while Ether rose 0.2% to USD 2,402.02. Separately, Apple confirmed an October 28 event to introduce products, including a planned touch-screen MacBook
Asian technology shares faced renewed selling across Asia despite Monday’s rebound on Wall Street. Upcoming US earnings will provide further evidence about demand and spending across the AI sector. At the same time, elevated bond yields, costly oil and political tensions in France continue to shape investor positioning.