Asian Stocks Slide as Tech Selloff Deepens and US-Iran Conflict Escalates

Asian stock markets declined on Thursday as a continued selloff in technology shares and escalating tensions between the United States and Iran weighed heavily on investor sentiment. Regional equities followed Wall Street lower after persistent weakness in major technology stocks triggered broad market caution.

Technology-focused indexes across Asia posted some of the steepest losses. South Korea’s KOSPI, Japan’s Nikkei 225, and Hong Kong’s Hang Seng Index all dropped more than 1%, reflecting growing concerns over the outlook for the global tech sector. The KOSPI initially suffered sharper losses before recovering some ground, supported by gains in chipmaker SK Hynix after reports suggested the company plans to significantly expand wafer production capacity.

Semiconductor stocks have been under pressure as investors lock in profits following the artificial intelligence-driven rally that fueled strong gains throughout May. While AI-related companies remain a major market focus, investors are becoming increasingly cautious about long-term profitability and returns. Adding to concerns, a recent Wall Street Journal report revealed that OpenAI is considering substantial price reductions amid intensifying competition from rival AI firms, raising fresh questions about revenue growth across the sector.

Broader Asian markets also weakened as geopolitical risks intensified. The United States reportedly launched strikes against several military targets in Iran, prompting retaliatory action from Tehran against U.S. military installations and allies in the Middle East. The renewed conflict dampened hopes for a diplomatic resolution and increased uncertainty across global financial markets.

The escalation pushed oil prices higher, fueling concerns about inflation and the possibility of prolonged elevated interest rates. Investors were already assessing stronger-than-expected U.S. consumer inflation data for May, while upcoming producer price figures are expected to provide additional insight into inflation trends.

Australia’s ASX 200 fell 0.5%, while China’s CSI 300 and Shanghai Composite indexes declined 1.1% and 0.8%, respectively. Singapore’s Straits Times Index also moved lower, while futures tracking India’s Nifty 50 pointed to a weaker opening.

With technology stocks facing profit-taking pressure and geopolitical tensions adding uncertainty, Asian markets remain vulnerable to further volatility in the near term.