Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election

Asian stock markets mostly declined on Friday, tracking sustained losses in global technology shares and a weak lead from Wall Street, while Japanese equities managed to stabilize ahead of a closely watched national election. Investor sentiment across the region remained fragile as concerns over artificial intelligence-driven disruptions and heavy corporate spending weighed on risk appetite.

Regional markets followed Wall Street lower after U.S. tech stocks extended sharp declines. S&P 500 Futures slipped 0.2% in late trading, with Amazon.com shares plunging as much as 11% after the e-commerce giant issued an aggressive spending outlook for 2026. The selloff in major U.S. technology stocks spilled over into Asia, pressuring tech-heavy indices across the region.

South Korea’s KOSPI fell 1.7%, reflecting broad losses in semiconductor and technology names, while Hong Kong’s Hang Seng Index declined 1.3% amid continued weakness in Chinese tech stocks. Singapore’s Straits Times Index dropped 0.7%, and India’s Nifty 50 futures edged down 0.1% ahead of a Reserve Bank of India policy meeting, where interest rates are widely expected to remain unchanged.

Mainland Chinese markets showed relative resilience, with the CSI 300 and Shanghai Composite indices trading in a narrow range as investors remained cautious amid ongoing economic uncertainty and mixed policy signals from Beijing.

Japanese stocks stood out as a rare bright spot in Asia. The Nikkei 225 and TOPIX indices rose about 0.7% each as markets turned their attention to Sunday’s national election. Polls suggest Prime Minister Sanae Takaichi’s party is on track for a decisive victory, potentially securing a super-majority that would allow for sweeping fiscal reforms. Expectations of increased fiscal stimulus and tax cuts to offset rising living costs supported equities, although concerns over Japan’s already elevated government debt have unsettled bond markets.

Australian stocks underperformed sharply, with the ASX 200 sliding as much as 2% after Reserve Bank of Australia Governor Michele Bullock struck a hawkish tone. Following the RBA’s first rate hike in two years, Bullock warned that strong domestic demand and tight capacity could keep inflation elevated, prompting markets to price in at least one more interest rate hike this year.