Asian markets traded down on Tuesday following the overnight losses on Wall Street amid and sell-off in technology stocks. Concerning the emergences of the low-cost Chinese generative AI model DeepSeek fuelled selling the of tech stocks globally.
Japan’s Nikkei declined 1.3% to 39,045.81, hence the broader Topix was up 0.36% at 2,768.43. This is lower in early trade. Hong Kong’s Hang Seng index futures showed a higher opening.
Nvidia supplier and chip-testing equipment manufacturer Advantest dropped 10%. They pulling down the Nikkei index the most. The share price of chip-making equipment manufacturer Tokyo Electron decreased by 5.3%. The investment stakes of the technology start-up firm SoftBank Group fell by 6%.
The Japanese yen increased by almost 1% versus the dollar, reaching its highest level since mid-December during the decline in US tech stocks.
In the meantime, various Asian markets, such as those in Taiwan, South Korea, and China, are shut down for the Lunar New Year celebration.
Overnight on Wall Street, the Nasdaq posted its biggest one-day percentage drop since December 18 on Monday as a low-cost Chinese artificial intelligence model prompted a steep sell-off in US chipmakers.
The Dow Jones Industrial Average gained 289.33 points, or 0.65%, to 44,713.58, while the S&P 500 lost 88.96 points, or 1.46%, to 6,012.28. The Nasdaq Composite closed 612.47 points, or 3.07%, lower at 19,341.83.
Nvidia’s share price sank 17%, Microsoft shares declined 2.1% and Alphabet’s stock price plunged 4.2%. On the other end, Dell Technologies share price dropped 8.7%
. Apple shares rallied 3.18%, while Vistra stock dropped 28.3%.
