Asia Markets dragged lower by tech sell-off

June 05, 2026 (MLN): Asia markets fell Friday as a tech-driven sell-off on Wall Street spread across the region, with South Korea bearing the brunt of the decline.

South Korea's Kospi plunged 5.01%, dragged down by heavyweights Samsung Electronics and SK Hynix, which shed 4.34% and 7.57%, respectively.

The small-cap Kosdaq index also fell 4.14%.

Pressure on the country's tech sector may intensify further after the labor minister urged major technology firms to share a greater portion of AI-driven semiconductor profits with workers and suppliers, warning that record earnings risk widening income inequality.

Japan's Nikkei 225 lost 1.53%, Australia's S&P/ASX 200 slipped 0.61%, and Hong Kong's Hang Seng fell 0.81%, while China's CSI 300 closed marginally lower, according to CNBC.

Indian equities bucked the trend, with the BSE Sensex edging up 0.23% and the Nifty 50 finishing slightly higher.

The regional weakness traced back to overnight moves on Wall Street, where investors rotated out of chip stocks and into non-tech names.

Broadcom triggered the shift after its fiscal second-quarter revenue fell short of estimates, sending the stock down more than 12% and pulling semiconductor peers broadly lower.

The Nasdaq Composite slipped 0.09% to close at 26,830.96, while the S&P 500 rose 0.41% to 7,584.31.

The Dow Jones Industrial Average outperformed, surging 874.86 points, or 1.73%, to a fresh record close of 51,561.93.

Broader sentiment was also weighed by uncertainty in the Middle East, where mixed signals from ceasefire negotiations continued to unsettle markets and keep oil and gasoline prices elevated.

Copyright Mettis Link News