Asian Markets Wobble as Software Stocks Face Heavy Sell-Off
China’s CSI Software Services Index fell 3%, while major technology groups listed in Hong Kong declined 1.8%.
Quick overview
- Stock markets globally experienced volatility due to a sell-off in traditional technology companies, particularly in the software sector.
- Investor focus is on Anthropic's Claude Cowork agent and its implications for the software industry amid rising AI capabilities.
- Asian equities showed mixed results, with some markets like South Korea's KOSPI gaining while others, such as China's CSI Software Services Index, declined.
- Concerns about potential disruptions in the software industry have persisted, affecting major companies despite some positive earnings reports.
Stock markets across several countries were shaken by a broad unwinding of positions in traditional technology companies. Investors remain closely focused on developments at Anthropic, particularly the rollout of its Claude Cowork agent and its expanding programming capabilities.
Asian equities opened Wednesday with pronounced volatility, against a challenging global backdrop following sharp declines on Wall Street and in major European markets. Investor concerns are increasingly centered on how recent advances in artificial intelligence could disrupt the traditional software industry and its underlying business models.
The cautious mood contrasted with movements in some commodities. Oil prices advanced after the United States shot down an Iranian drone and armed vessels approached a U.S.-flagged ship along a key maritime route, heightening tensions in the Middle East. At the same time, precious metals rebounded following steep losses in recent sessions.
Unwinding in traditional software
Selling pressure was particularly concentrated in data analytics, professional services, and software companies across the United States and Europe. The move intensified after Anthropic last Friday unveiled add-ons for its Claude Cowork agent, a launch that reignited fears of structural disruption across these sectors as AI capabilities accelerate.
In Asia, while some software-related firms followed the global downturn, selling pressure was more contained. The region’s heavier exposure to hardware manufacturing helped cushion the broader correction. Even so, China’s CSI Software Services Index fell 3%, while major technology groups listed in Hong Kong declined 1.8%.
Japan saw some of the sharpest early moves. Shares of advertising group Dentsu dropped more than 6%, while Nomura Research Institute slid nearly 8%. The Nikkei index was down 0.8%.
By contrast, the MSCI Asia-Pacific index excluding Japan managed to hold a marginal gain of 0.1%. Meanwhile, U.S. futures pointed to a weak open: Nasdaq futures fell 0.12% after losing more than 1% in the previous session, while S&P 500 futures were little changed. In Europe, EUROSTOXX 50 futures slipped 0.1%, while FTSE futures edged up 0.08%.
The unease echoes last week’s market reaction, when Microsoft shares fell despite strong earnings, amid fears of potential disruptions to its software business. That instability has carried into this week, underscoring that technology is not a uniform winner in the AI cycle and that pockets of vulnerability remain.
Against this backdrop, some markets managed to break away from the broader weakness. South Korea’s KOSPI, with its heavy technology weighting, rose 1.4%, while Taiwanese equities gained 0.2%.
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