Asian markets end lower as tech and AI stocks trigger broad sell-off

Major Asian stock markets closed sharply lower on Friday, June 26, 2026, with heavy selling concentrated in the technology and semiconductor sectors. Following a strong rally over the past few weeks, investors opted to take profits, triggering a broad correction across the Asia-Pacific region. Among the main indices:

1. Nikkei 225 (Tokyo): approximately -4.2%, closing at 69,360.88;
2. Hang Seng (Hong Kong): approximately -2.0%, closing at 22,657.09;
3. Shanghai Composite: approximately -2.2%, closing at 4,027.26;
4. Kospi (Seoul): approximately -5.8%, closing at 8,411.21.

The sharp shift in market sentiment was largely driven by a global sell-off in technology stocks. Investors reacted negatively after Apple announced price increases for several hardware products, interpreting the move as a sign of rising costs associated with artificial intelligence components. At the same time, despite Micron's strong quarterly earnings, many traders chose to lock in profits from the recent semiconductor rally, putting pressure on major Asian chipmakers including SoftBank, Samsung Electronics, SK Hynix, and other semiconductor manufacturers.

Geopolitical developments in the Middle East also remain closely monitored. Although tensions around the Strait of Hormuz have shown signs of easing and oil prices continued to decline, investors remain cautious. Market sentiment is also being influenced by:

1. expectations surrounding the Federal Reserve's upcoming policy decisions;
2. a stronger U.S. dollar and a weaker Japanese yen;
3. institutional portfolio rebalancing ahead of quarter-end;
4. concerns over the sustainability of AI sector valuations following the recent rally.

Andrea Pelucchi