Asia markets fall amid AI stock weakness

December 18, 2025 (MLN): Asia markets moved sharply lower on Thursday as weakness in U.S. equities spilled into the region and investors continued to pull back from technology shares.

Artificial intelligence related stocks faced heavy selling pressure after recent developments raised concerns about demand and investment in the sector, according to CNBC.

Market sentiment deteriorated after a media report said Blue Owl Capital a key investor linked to Oracle withdrew funding from one of the company’s data center projects.

The news sent Oracle shares down 5.4% and weighed on the broader AI trade.

Major names tied to artificial intelligence also came under pressure including Broadcom Nvidia and Advanced Micro Devices.

Caution also prevailed ahead of the Bank of Japan’s two-day policy meeting which began Thursday.

Investors largely expect the central bank to lift interest rates to 0.75% on Friday marking the highest level seen in nearly 30 years.

Japanese equities led regional losses with the Nikkei 225 falling 1.53% while the broader Topix index slipped 0.45%.

SoftBank Group emerged as one of the biggest drags on the Nikkei after its shares dropped more than 7% at one stage before recovering slightly to trade about 3% lower.

Technology stocks across Japan also weakened as Advantest fell as much as 5% while Lasertec Renesas Electronics and Tokyo Electron declined between 3% and 4%.

South Korean markets followed the negative trend with the Kospi down 1.36% and the tech-heavy Kosdaq lower by 0.64%. In Australia the S&P ASX 200 eased 0.3%.

Shares of energy major Woodside Energy declined 1.84% after the company announced that chief executive Meg O’Neill had stepped down to take over as CEO of BP.

Hong Kong stocks also opened in the red with the Hang Seng index down 0.76% while China’s CSI 300 remained largely flat.

Shares of Shanghai-listed chipmaker MetaX Integrated Circuits dropped as much as 7% after posting a massive surge of nearly 700% during its debut session a day earlier.

The company raised close to $600m through its initial public offering.

Overnight U.S. markets closed lower across the board adding to the cautious global mood.

The S&P 500 declined 1.16% while the Nasdaq Composite posted the steepest loss of 1.81%. The Dow Jones Industrial Average ended the session down 0.47%.

Investor focus has now shifted to U.S. inflation data with the November consumer price index scheduled for release later Thursday.

The report will be the first inflation update published since the government shutdown ended last month.

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