Asian stock markets slump amid tech and geopolitical tensions

Asian equities fell sharply after a correction on Wall Street and mounting pressure on the technology sector. In Taiwan, the Taiwan Capitalization Weighted Index dropped, while Japan's Nikkei 225 plunged over 5%. Mainland China saw the Shanghai Composite slide more than 2% and the Shenzhen Composite near 5%. Hong Kong’s Hang Seng lost over 2%.

South Korea’s market was hit hardest, with the Kospi falling more than 7% and the small‑cap Kosdaq down 5% as semiconductor shares slumped. Major chip makers such as Kioxia, SoftBank Group and Advantest posted double‑digit losses. Investors remain cautious despite Taiwan Semiconductor Manufacturing Co.'s earnings beat, questioning the sustainability of the artificial‑intelligence investment narrative. The declines were amplified by heightened geopolitical risk in the Taiwan Strait and the South China Sea, adding further uncertainty to the region’s markets.

The broader impact was felt in other Asian markets, with Australia’s S&P/ASX 200 and India’s Nifty 50 recording modest moves, while European indices opened with only slight losses.