Asia-Pacific Markets Brace for Another Tech-Driven Sell-Off

Futures point to weaker openings across major indexes as Wall Street rout continues

Feb. 5, 2026 at 7:23pm

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Asia-Pacific markets are expected to face another challenging session as the tech sell-off that rocked Wall Street deepens. Futures data indicates major indexes in the region, including Australia's S&P/ASX 200, Japan's Nikkei 225, and Hong Kong's Hang Seng, are poised to open lower following the rout on U.S. exchanges. Tech giants like Alphabet and Qualcomm were among the hardest hit, with the latter reporting a weaker-than-expected forecast due to a global memory shortage.

Why it matters

The tech-driven sell-off in Asia-Pacific markets reflects broader concerns about the impact of rising interest rates, inflation, and economic uncertainty on the performance of high-growth technology companies. This could have far-reaching implications for investor sentiment and the overall health of the regional economy.

The details

In the U.S., Alphabet's shares fell 0.5% after the company reported a sharp rise in artificial intelligence spending, with capital expenditure totaling $185 billion for 2026. Qualcomm, a major semiconductor manufacturer, slid more than 8% after posting a weaker-than-expected forecast due to a global memory shortage. These declines contributed to broader losses on Wall Street, with the Dow Jones Industrial Average shedding 1.20%, the S&P 500 losing 1.23%, and the tech-heavy Nasdaq Composite posting the biggest decline at 1.59%.

  • The Asia-Pacific markets are expected to open weaker on Friday, February 6, 2026.

The players

Alphabet

The parent company of Google, a major technology conglomerate.

Qualcomm

A leading semiconductor manufacturer that produces chips for a variety of electronic devices.

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The takeaway

The continued tech sell-off in Asia-Pacific markets underscores the broader challenges facing the technology sector, as investors grapple with the impact of macroeconomic factors like rising interest rates and inflation. This could lead to further volatility and uncertainty in the region's financial markets in the near term.