Asian Shares Tumble Amid Global Tech Selloff Concerns

Asian markets experienced a significant decline on February 5, driven by concerns over rising costs related to artificial intelligence investments. This shift triggered a sell-off in technology stocks, coinciding with a drop in the value of silver and Bitcoin.

Market Overview

Following a tumultuous trading session on Wall Street, Asian stocks mirrored the downward trend. The MSCI Asia-Pacific index, excluding Japan, fell by 1.7%. South Korea’s KOSPI dropped 3.6%, and Taiwanese shares saw a 1.1% loss, although financials and real estate sectors displayed resilience.

Alphabet’s Mixed Results

Alphabet Inc. reported strong sales but revealed plans for capital expenditures between $175 billion and $185 billion for the year, which surpassed analyst expectations. This announcement led to volatile trading, with shares hitting a low of over 6% before closing just 0.4% lower.

Technology Sector Downturn

Investor sentiment shifted, resulting in a rotation from major tech firms to more defensive stocks like Walmart. The technology sector saw a considerable loss in market value, amounting to approximately $830 billion since January 28. Additionally, Advanced Micro Devices recorded disappointing earnings, causing its shares to plummet by 17% overnight.

Currency and Commodities Performance

Precious metals faced steep declines, interrupting a brief streak of gains. Silver prices fell by 15% to $74.6 per ounce, slightly above its recent low of $71.32. Gold dropped 1.8%, settling at $4,863 per ounce.

• Bitcoin prices fell 1.8%, reaching $71,404 the lowest since November 2024.
• The Australian dollar decreased by 0.4%, trading at $0.6969.
• The Kiwi dollar slid 0.3% to $0.5984.

Political and Economic Factors

The Japanese yen remained steady at 156.82 per dollar amid speculations about upcoming elections. Polls suggest a likely win for Prime Minister Sanae Takaichi, which raises concerns about the nation’s financial stability.

Oil Prices and Economic Indicators

In the oil market, both U.S. West Texas Intermediate and Brent crude futures saw declines of 1.4%, settling at $64.23 and $68.47 per barrel, respectively. This movement followed news of planned talks between the U.S. and Iran in Oman.

As global markets brace for upcoming earnings reports from Amazon and policy decisions from the Bank of England and the European Central Bank, investor caution remains prevalent.