Asian markets tumble amid tech sell-off, AI spending concerns

November 02, 2026 (MLN): Asian markets traded lower on Monday, following losses on Wall Street last week as renewed selling pressure in technology stocks weighed on investor sentiment.

Japan’s Nikkei 225 declined 0.54%, while the broader Topix index fell 0.74%. South Korea’s Kospi dropped 1.39% at the opening, while the small-cap Kosdaq index lost 0.81%. Australia’s S&P/ASX 200 slipped 0.24%.

Investor sentiment remained cautious amid concerns over artificial intelligence (AI) spending, geopolitical developments in the Middle East and the upcoming US midterm elections, according to CNBC.

US technology stocks faced renewed pressure last week after Alphabet and Microsoft issued capital expenditure forecasts below expectations, raising questions about the pace of investment in AI infrastructure. Amazon also maintained its existing full-year capital expenditure guidance.

Despite the recent sell-off, Warren Pies of 3Fourteen Research said the fundamentals underpinning AI-related investments remained intact, pointing to improving forward earnings estimates and developments surrounding Anthropic’s initial public offering filing.

The Nasdaq Composite and S&P 500 recorded losses for October amid concerns over AI spending, with the Nasdaq posting its steepest monthly decline since March 2025. The Dow Jones Industrial Average, meanwhile, gained nearly 2% as investors shifted towards defensive sectors, including healthcare.

Market participants are also preparing for the US midterm elections scheduled for Tuesday, which will determine control of Congress. Investors are additionally awaiting the October nonfarm payrolls report, due Friday, with economists surveyed by Dow Jones expecting an increase of 55,000 jobs.

Corporate earnings will remain in focus this week, with Apple scheduled to release its results on Monday. McDonald’s and Qualcomm are also expected to report later in the week.

Copyright Mettis Link News