Asian equity markets are expected to extend the losses experienced on Tuesday, following a substantial tech-led selloff on Wall Street. This decline has intensified worries that the rally in equities, largely fueled by artificial intelligence, might have gone too far. Futures for equity indexes in Japan and South Korea are pointing lower, while contracts for Hong Kong suggest modest gains. US equity contracts, however, edged higher in early Wednesday trading.
Tuesday saw a significant downturn in the US markets, with the tech-heavy Nasdaq 100 tumbling by 3.3% and the S&P 500 falling by 1.4%. A closely monitored semiconductor gauge, which had more than doubled from its war-driven lows, slumped approximately 8%. This tech-heavy decline has set a cautious tone for Asian markets.
