Asian Shares Drop After Wall Street Retreat Driven by Sinking Tech Stocks

Investors brace for continued volatility as tech sector struggles weigh on broader markets

Feb. 4, 2026 at 10:55pm

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Asian stock markets declined on Thursday following a retreat on Wall Street, driven by a sell-off in technology stocks. The Nikkei 225 in Tokyo shed 0.7%, while the Kospi in South Korea dropped 3.2%. Chinese markets also retreated, with the Hang Seng falling 1.2% and the Shanghai Composite losing 0.8%. The declines came after the S&P 500 fell 0.5% in the previous session, with the tech-heavy Nasdaq Composite sinking 1.5%.

Why it matters

The tech sector's struggles have weighed heavily on broader market performance, as these high-growth companies have come to dominate major indexes. Investors are grappling with concerns about the impact of artificial intelligence and other disruptive technologies on traditional software and hardware makers. The volatility in the tech space is contributing to wider market uncertainty.

The details

Chip maker Advanced Micro Devices dropped 17.3% despite reporting stronger-than-expected quarterly profits, as investors were unimpressed by the company's revenue forecast. Ride-hailing firm Uber Technologies also fell 5.1% after missing analysts' expectations. However, some tech stocks like Super Micro Computer, which sells AI servers, saw gains after reporting better-than-expected results.

  • The Asian market declines occurred on Thursday, February 5, 2026.

The players

Advanced Micro Devices

A major semiconductor company that designs and produces microprocessors, motherboard chipsets, and other computer components.

Uber Technologies

A multinational ride-hailing company that operates a mobile app-based transportation and food delivery platform.

Super Micro Computer

A company that designs and manufactures high-performance, high-efficiency server and storage solutions, including servers powered by artificial intelligence technology.

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The takeaway

The continued volatility in the tech sector is contributing to broader market uncertainty, as these high-growth companies have become increasingly influential in major stock indexes. Investors will be closely watching for signs of further disruption and adaptation within the tech industry as it grapples with the impact of emerging technologies like artificial intelligence.