Asian stocks slide as global tech selloff deepens; Indonesia hit by Moody’s outlook cut
Asian stock markets fell sharply as a global technology selloff extended into the region. Korea’s KOSPI led losses, down about 1.7%, while a regional tech index dropped roughly 2.4% as major chip names declined (Samsung Electronics -1.2%, SK Hynix -0.2%). Software and IT shares plunged worldwide after Anthropic launched Cowork productivity tools for lawyers, stoking AI disruption fears; global software valuations lost over $1 trillion and the Nasdaq 100 recorded its worst three-day stretch since April. Japan’s TIS plunged 16%, Trend Micro -7%, and Indian IT names TCS and Infosys fell over 7%. Southeast Asia’s largest market, Indonesia, slumped over 2% after Moody’s cut the country’s credit outlook to negative; the rupiah weakened to 16,885 per dollar. Foreign investors have pulled roughly $1bn from Indonesian equities so far in 2025, and MSCI flagged a potential downgrade to frontier-market status. Other regional moves: Singapore -0.7%, Thailand +0.5%; South Korean won weakened to ~1,470.6/dollar. Traders cited de-risking after stretched tech positioning and concerns about AI-driven disruption to software and IT services. Key implications for traders: heightened volatility in tech-linked assets, potential continued outflows from Indonesian markets, and greater sensitivity to AI news and sovereign outlook changes.
Bearish
The net effect is bearish. A global tech selloff driven by AI disruption fears has already erased significant software market value and led to the Nasdaq 100’s worst short-term stretch in months—conditions that typically depress risk appetite across correlated markets, including crypto. Regional contagion is evident: Korean chip stocks and other IT names fell, and Indonesia’s market weakness after Moody’s outlook cut raises sovereign and FX risks that can trigger capital flight. For traders: expect near-term elevated volatility and risk-off flows out of high-beta tech and emerging-market assets. Crypto markets often follow equities during risk-off episodes, so expect downside pressure on major tokens, higher correlation with equities, and larger intraday swings. Longer-term, the selloff could create selective buying opportunities if fundamentals remain intact, but only after volatility subsides and clarity on AI business impacts and sovereign policy responses (especially Indonesia) emerges. Historical parallels: 2022/2023 tech drawdowns showed similar spillovers into crypto and EM assets, with initial sharp losses followed by gradual decoupling when macro or sector-specific catalysts clarified.