Asia report: Markets join global rout on AI fears

13th Feb 2026 11:15

(Sharecast News) - Asia-Pacific markets fell on Friday, tracking artificial-intelligence-driven losses on Wall Street that pushed the S&P 500 to a third consecutive day of declines and weighed on sentiment across the region.

Investors braced for spillover from the US, where sectors including real estate and logistics have come under pressure this year following the release of AI tools that threaten to automate tasks and erode profit margins.

Shares of several US trucking and logistics firms have declined on concerns that AI could slash freight inefficiencies and reduce demand for services, while software names such as Palantir Technologies and Autodesk have also slipped.

Taiwan markets were closed for the Lunar New Year.

"Markets across a broad spectrum of asset classes faced sharp declines as concerns surrounding tech sector earnings and commodity weakness weighed heavily on equities," said Patrick Munnelly, market strategy partner at TickMill.

"The S&P 500 fell 1.6%, and the Nasdaq 100 slid 2%."

He added that "despite robust earnings from major tech firms, doubts about the sustainability of AI-driven growth have deepened, triggering widespread tech stock selloffs," with weeks of growing concern now evolving into a broader risk re-evaluation after more than a year of steady gains.

Markets fall across the region

In Japan, the Nikkei 225 dropped 1.21% to 56,941.97, while the broader Topix fell 1.63% to 3,818.85.

Nexon tumbled 16.19%, Inpex slid 13.13% and Rakuten lost 10.55% as technology and energy names led losses.

Munnelly noted that "Asian markets also faced setbacks, with a 1.4% drop marking their first decline in nearly a week," while caution persisted around tech-heavy benchmarks despite their strong year-to-date performance.

Chinese equities also retreated, with the Shanghai Composite down 1.26% at 4,082.07 and the Shenzhen Component falling 1.28% to 14,100.19.

Saurer Intelligent Technology declined 10.06%, while Shuangliang Eco-Energy Systems and Hangzhou Cable each dropped 9.99%.

"Chinese tech stocks were hit as investors trimmed risk exposure ahead of the Lunar New Year holidays in mainland China and Hong Kong," Munnelly said, adding that oil prices were "on track for their first consecutive weekly decline of the year, reflecting cautious sentiment in global markets."

In Hong Kong, the Hang Seng Index fell 1.72% to 26,567.12.

Zijin Mining Group shed 7.64%, China Hongqiao Group lost 5.37% and China Petroleum & Chemical Corp declined 5.12%.

South Korea's Kospi 100 edged 0.17% lower to 6,246.42, with Posco ICT down 6.2%, EcoPro Materials falling 5.87% and Samsung C&T losing 4.79%.

Munnelly observed that South Korea's Kospi index has "soared 31% year-to-date, making it the world's best-performing stock market," underscoring the scale of this year's rally even as investors trimmed risk.

Sydney and Wellington also in the red, NZ manufacturing still expanding

Australian stocks were sharply lower, with the S&P/ASX 200 sliding 1.39% to 8,917.60.

Austal plunged 22.82%, Nick Scali dropped 22.32% and Cochlear fell 18.9%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 underperformed, declining 2.46% to 13,198.18.

Serko fell 7.17%, Fisher & Paykel Healthcare dropped 7.08% and Eroad lost 6.19%.

Fresh data showed the country's manufacturing sector remained in expansion at the start of 2026, with the BNZ-BusinessNZ performance of manufacturing index easing to 55.2 in January from 56.1 in December but staying well above the 50 mark that separates growth from contraction and above the long-run average of 52.5.

Production at 56.6 and new orders at 56.4 led gains, while deliveries at 53.3 and employment at 52.9 also expanded, marking a third straight month of job growth.

However, positive commentary from respondents fell to 47.7% from 57.1%, with manufacturers citing weak demand and seasonal disruptions.

Dollar strengthens, oil prices mixed

In currency markets, the dollar strengthened, last trading up 0.35% on the yen at JPY 153.28, as it rose 0.58% against the Aussie to AUD 1.4186 and gained 0.24% on the Kiwi to change hands at NZD 1.6606.

Oil prices were mixed, with Brent crude futures last up 0.12% on ICE at $67.60 per barrel, while the NYMEX quote for West Texas Intermediate slipped 0.21% to $62.71.

Reporting by Josh White for Sharecast.com.