Asian markets fall while Wall Street tech stocks recover

October 20, 2026 (MLN): Asian markets fell on Tuesday, diverging from gains on Wall Street, where technology stocks staged a recovery following last week’s sharp sell-off.

Japan’s Nikkei 225 dropped 0.79%, while the broader Topix index declined 0.56%. South Korea’s Kospi shed 2.31%, and the Kosdaq fell 1.03%. Australia’s S&P/ASX 200 traded 0.6% lower, while Hong Kong’s Hang Seng Index lost 1.11%. Mainland China’s CSI 300 also slipped 0.58%.

The declines came despite a rebound in US equities, as technology shares recovered some ground after last week’s sell-off sparked concerns over heavy borrowing to finance artificial intelligence (AI) infrastructure expansion, according to CNBC.

Improving sentiment toward technology stocks provided some relief to Wall Street investors, encouraging them to unwind hedges after volatility protection costs surged during Friday’s intensified market decline, according to Jose Torres, senior economist at Interactive Brokers.

CoreWeave, which lost more than 25% last week, attempted to recover following a Goldman Sachs upgrade to Buy. However, its early gains faded, and the stock ended the session slightly lower.

Investors are also preparing for a busy week of corporate earnings, with around 70 S&P 500 companies scheduled to report their results. United Airlines is due to release its earnings after Tuesday’s closing bell, while General Motors is expected to report before the market opens.

Meanwhile, US housing starts and pending home sales data are also scheduled for release on Tuesday, adding to the economic indicators investors will assess during the session.

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