Asia markets slide on Wall Street weakness

December 16, 2025 (MLN): Asia equity markets posted broad losses on Tuesday, mirroring a weaker close on Wall Street as investors continued to scale back exposure to artificial intelligence-related stocks in the United States.

U.S. technology shares came under renewed pressure overnight, with major AI-linked companies retreating sharply.

Oracle recorded losses of more than 5%, while Broadcom declined over 2%, according to CNBC.

Microsoft also ended the session in negative territory, reinforcing signs of a cooling trade in high-growth technology names.

Markets across Asia followed suit. South Korea’s benchmark Kospi extended its decline for a second consecutive session, falling 1.78%, while the tech-heavy Kosdaq dropped a steeper 2.12%, leading regional losses.

South Korean medical firm ADEL drew attention after announcing a drug development agreement with French pharmaceutical group Sanofi, a deal valued at up to $1.04bn, the company said late Monday.

Japanese equities also moved lower, with the Nikkei 225 sliding 1.27% amid weakness in basic materials and property stocks.

The broader Topix index fell 1.32%. Meanwhile, Japan’s flash composite purchasing managers’ index (PMI) pointed to slower economic momentum in December, easing to 51.5 from 52 in the prior month.

Hong Kong’s Hang Seng Index declined 1.47%, pressured by losses in energy and basic materials shares, while mainland China’s CSI 300 slipped 0.92%.

Australian stocks were not spared, with the S&P/ASX 200 closing 0.29% lower after giving up earlier gains.

Data from S&P Global showed business activity in Australia expanded at a slower pace in December, as the flash composite PMI dropped to 51.1 from 52.6 in November.

In the U.S., stocks ended mostly lower overnight. The S&P 500 edged down 0.16% after trading higher earlier in the session, while the Dow Jones Industrial Average posted a marginal decline.

The tech-focused Nasdaq Composite underperformed, falling 0.59%, weighed down by losses in major technology names.

Overall, global markets remain cautious as investors reassess valuations in the technology sector and digest signs of moderating economic growth across key regions.

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