Asia markets edge lower amid AI sell-off concerns

December 30, 2025 (MLN): Asia markets traded mostly lower on Tuesday, extending losses after a renewed sell-off in U.S. technology stocks fueled concerns over a potential artificial intelligence bubble.

Sentiment weakened after major AI-linked shares on Wall Street declined overnight, according to CNBC.

Nvidia slid more than 1% in Monday’s U.S. session, trimming part of its over 5% gain from last week.

Palantir Technologies, Meta Platforms and Oracle also closed in negative territory, weighing on broader market confidence.

In Japan, the Nikkei 225 slipped 0.26%, while the broader Topix index fell 0.27%. Shares of SoftBank Group dropped more than 2% early in the session before recovering some ground.

The move came after SoftBank revealed a $4bn agreement to acquire data center investment firm DigitalBridge, reinforcing its artificial intelligence strategy.

SoftBank founder and CEO Masayoshi Son said the deal would strengthen infrastructure for next generation AI data centers and support the company’s ambition to become a leading “Artificial Super Intelligence” platform provider.

DigitalBridge shares surged nearly 10% following the declaration.

South Korean markets underperformed, with the Kosdaq sliding 0.99%, the steepest decline in the region, while the benchmark Kospi ended flat.

In Greater China, Hong Kong’s Hang Seng Index bucked the regional trend, rising 0.41%, whereas mainland China’s CSI 300 remained unchanged.

Investor attention also turned to geopolitical developments after China announced new military exercises around Taiwan.

Taiwan’s President Lai Ching-te said the island would act responsibly and avoid escalation, while criticizing China’s continued military pressure.

Taiwan’s Weighted Index edged down 0.1%, with major technology stocks including Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry falling about 1%.

Elsewhere, Australia’s S&P/ASX 200 finished flat after giving up earlier gains. U.S. equity futures were little changed during early Asian trading hours.

Overnight in the United States, markets closed lower, with the S&P 500 declining 0.35%, the Nasdaq Composite dropping 0.50% and the Dow Jones Industrial Average retreating 0.51%.

Investors are now awaiting key U.S. economic cues, including home price data due later Tuesday and the release of the Federal Reserve’s December meeting minutes, which are expected to offer further insight into the central bank’s policy outlook.

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