U.S. tech selloff hits global markets; Japan, Korea and Australia tumble as stronger U.S. jobs data reshapes rate-cut expectations
Asia’s tech-heavy markets were hammered on Friday after a wave of U.S. tech losses and fading expectations of a December Federal Reserve rate cut triggered a broad risk-off move across the region. Japan’s SoftBank collapsed more than 10%, leading a rout that swept through semiconductor and AI-linked names from Tokyo to Seoul.
Japan’s Nikkei 225 opened down 1.57%, with the Topix slipping 0.72%. Major chip suppliers were hit hardest: Advantest plunged over 9%, Tokyo Electron fell nearly 6%, Lasertec dropped almost 5%, and Renesas slid nearly 2%. Adding pressure, Japan’s October core inflation accelerated at its fastest pace since July, reinforcing expectations that the Bank of Japan may move ahead with rate hikes at a moment when global liquidity is already tightening.
Across the region, the selloff deepened. South Korea’s Kospi plunged 4.09%, while the small-cap Kosdaq dropped 3.01%, with heavyweights Samsung Electronics and SK Hynix falling 4% and 9%, respectively. Australia’s S&P/ASX 200 declined 1.3%, and Hong Kong’s Hang Seng futures pointed sharply lower, trading at 25,460 versus the index’s previous close of 25,835.57.
The turmoil followed a dramatic reversal on Wall Street. Oracle and AMD were among the first AI names to slip into the red before Nvidia reversed early gains to close nearly 3% lower, dragging the broader tech complex with it. The Nasdaq Composite sank 2.16%, while the S&P 500 fell 1.56% and the Dow dropped 0.84%—a sharp turnaround from intra-day highs fueled by early optimism.
The trigger: stronger-than-expected U.S. labor data. The surprise print raised doubts that the Fed will cut rates next month, with futures markets pricing just a 40% chance of a December quarter-point cut, according to the CME FedWatch Tool. Investors betting on cheaper borrowing costs—critical fuel for high-growth tech valuations—were left scrambling.
Dung Duong, Chief Asset Management Officer at ROX Group, said the selloff underscores how tightly global markets are now bound to the fate of U.S. monetary policy and the AI cycle:
“When U.S. tech reverses, Asia feels it instantly. SoftBank’s drop is a reminder that leverage, innovation bets, and rate expectations are all colliding. For long-term investors, this is not a time for panic—but for discipline. Volatility will define the next quarter until the Fed gives a clearer signal.”
With inflation concerns rising in Japan, growth worries building in Korea, and the Fed keeping markets on edge, the global tech space faces a fragile stretch ahead. The question now is whether Friday’s rout marks a short-term shakeout—or the start of a deeper reset in the AI-driven market cycle.
