Asia Markets Wobble Amid Tech Bubble Fears and Global Policy Shifts
- Rahaman Hadisur
- 9 hours ago
- 2 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Asia
In a mixed trading session on Monday, major Asian stock markets slipped as investor caution mounted due to concerns over an overheating technology sector and uncertainties in global monetary policy.
Japan’s Nikkei 225 dropped by more than 180 points, while South Korea’s Kospi tumbled around 1.6 percent, reflecting deepening unease in regional equity markets.
Meanwhile, Hong Kong’s Hang Seng Index saw modest gains, supported by a rebound in select tech names, though gains were capped by broader cautious sentiment.
Markets were grappling with fears that investments in artificial intelligence and tech may have grown too speculative, sparking concerns about a potential bubble.
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In South Korea, leading chipmaker SK Hynix surged nearly 3.7 percent, underscoring the continued volatility in semiconductor stocks as a major driver of market sentiment.
Investors were also closely watching global policy developments. A softer tone from U.S. Federal Reserve officials has renewed expectations of an interest rate cut, boosting risk appetite.
Traders in Asia welcomed lower U.S. Treasury yields, which have provided fresh liquidity and supported risk assets in the region.
Despite the short-term jitters, macro forecasts for Asia remain broadly positive. The IMF recently raised its 2025 growth outlook for the region to 4.5 percent, citing strong export momentum, intra-regional trade, and surging innovation, especially in AI and technology.
However, the fund cautions that trade tensions and geopolitical risks could derail this robust outlook.
As markets navigate the fine line between optimism and overvaluation, regional investors appear to be recalibrating their strategie,s favoring quality technology names while remaining alert to global monetary policy shifts and geopolitical headwinds.
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