Asia-Pacific Stocks Plunge: Tech Slump Triggers Market Rout

BREAKING: A major sell-off is hitting the Asia-Pacific equity markets as technology stocks face a dramatic downturn. Just today, Japan’s stock market experienced its steepest decline in over six months, largely driven by a rout in tech shares, following significant losses on Wall Street.

In Tokyo, the Topix index plummeted, with shares of SoftBank Group diving as much as 14%—its worst drop since August 2024. The Nikkei 225 index fell below 50,000, reflecting heavy selling pressure across technology-related sectors. South Korea’s Kospi index also suffered, dropping as much as 4.8% and sinking below 4,000 for the first time since August, marking a two-day decline of 7%—the sharpest drop in over six months.

The negative sentiment has led to significant currency movements as investors flock to safe-haven assets. The Japanese yen and Swiss franc both gained ground as the risk-off climate intensified. However, a trade tariff announcement from China helped to ease some losses later in the session. Beijing confirmed it would suspend 24% of U.S. tariffs while maintaining a 10% rate for a year, effective November 10.

Meanwhile, in Canada, officials revealed a concerning fiscal update, projecting a C$78.3 billion deficit for 2025/26, nearly double previous estimates. This news weighed on the Canadian Dollar, which, along with the New Zealand Dollar, is feeling pressure from softening labor market data. New Zealand’s jobless rate climbed to 5.3% in Q3, while employment figures remained stagnant, pushing the AUD/NZD exchange rate to a 12-year high.

The Bank of Japan (BOJ) minutes revealed a cautious stance on monetary policy normalization, highlighting ongoing uncertainty surrounding U.S. tariffs and global trade dynamics. In China, the latest RatingDog/S&P Global services PMI fell to 52.6 in October, indicating a three-month low driven by declining export orders and employment figures.

As these developments unfold, investors are urged to remain vigilant. The impact of these market shifts could reverberate globally, affecting investment strategies and economic forecasts.

What happens next? Market analysts are closely monitoring the reaction of global equities and currencies as the fallout from today’s trading session continues. Stay tuned for further updates as this story develops.