Asia Tech Stocks Fall as AI Spending Worries Spread From Wall Street

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Asian stock markets fell sharply on Friday, October 30, 2026, led by technology and chip shares. Investors were worried that the huge sums big tech companies are spending on artificial intelligence may take a long time to pay off. Japan and South Korea fell the most, China also fell, and Hong Kong was the notable exception, rising on the day.

What happened

The selloff started on Wall Street. Google parent Alphabet fell 12.6 percent on Thursday after its results disappointed investors. After the US market closed, Amazon fell about 7 percent in extended trading and Intel plunged about 23 percent, as both raised fresh doubts about the returns on AI spending. Reuters reported that this pushed Nasdaq 100 futures down and sent chip shares across Asia lower. In Japan, the Nikkei 225 fell 2.12 percent to close at 63,290.11, after falling more than 3 percent at one point in the session. The broader Topix index fell 0.95 percent to 3,965.07. Chip related shares were among the hardest hit, with Advantest, Tokyo Electron and Kioxia falling by 5 to 7 percent. In South Korea, the Kospi fell 3.48 percent to close at 5,730.74. Samsung Electronics fell 3.02 percent and SK hynix fell 7.08 percent. Trading in Kospi futures was briefly paused during the morning after futures fell more than 5 percent, a safety step known as a sidecar. That pause does not stop the whole market, it briefly halts program trading to slow a very fast move. In China, the Shanghai Composite fell 1.44 percent to 3,599.02. Taiwan’s Taiex fell 3.19 percent. Hong Kong went the other way, with the Hang Seng Index rising 1.4 percent to 23,282.60.

Why it matters for beginners

When one large market falls for a clear reason, other markets often react the same way, especially when they own the same kind of companies. Many Asian markets are home to the chip makers and suppliers that build the hardware behind AI. If investors doubt AI spending in the United States, they often sell those suppliers too, even when the local companies have not reported new results that day. A second lesson is that a market can fall hard in the morning and still close less badly. The Nikkei fell more than 3 percent early in the session and closed down 2.12 percent. The Kospi fell more than 5 percent early and closed down 3.48 percent. That does not mean the worry went away, it means buyers stepped in during the day at lower prices.

What to watch next

Watch whether US tech shares steady or fall further when Wall Street trades again, because Asia has been following that lead. Watch chip shares in Japan, South Korea and Taiwan in particular, since they have moved the most. Watch also whether Hong Kong keeps moving differently from the rest of Asia, or joins the decline. For a wider view of the same October selloff, see our earlier post on the Nasdaq wipeout in October.

FAQ

Why did Asian stocks fall on October 30? They followed US tech shares lower after Alphabet, Amazon and Intel results raised doubts about how quickly heavy AI spending will turn into profit.

Which Asian market fell the most? South Korea’s Kospi fell 3.48 percent to 5,730.74, followed by Japan’s Nikkei, down 2.12 percent to 63,290.11.

Why did Hong Kong rise while others fell? Hong Kong’s Hang Seng Index rose 1.4 percent to 23,282.60, showing that not every market moves the same way on the same day, even in a broad selloff.

Does a one day fall mean AI spending is a bad idea? No. It means investors are questioning the timing and the size of the returns, not that the technology has stopped being used. Prices can fall when expectations were very high, even if a business is still growing.