Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: AI fears weigh on technology stocks and drive Asian markets to decline in Simple Termsand what it means for users..
Tokyo – Asian stock markets were impacted on Wednesday. This was due to Wall Street fears about AI developments. These developments could affect software companies. Technology stocks in the region saw significant declines. This coincided with drops in their U.S. counterparts Tuesday night.
Japanese software companies led the declines across Asia. T.I.S., a major IT services provider and system integrator, saw its shares fall over 15%. Trend Micro lost more than 8%. NS Solutions shares declined by approximately 7%.
Indian IT companies’ shares also fell. The Nifty IT index dropped about 6%. Major sector companies saw significant losses. Tata Consultancy Services fell 5.8%. Infosys declined 6.2%. HCL shares dropped 5.5%. This downturn followed a strong Tuesday for the Indian IT sector. The sector had gained after a trade agreement with the U.S. was announced.
Chinese software companies experienced widespread sell-offs. Kingdee International Software shares plummeted over 15%. Cloud computing giant Tencent decreased by 3.27%. Alibaba lost over 1%. Baidu shares fell by more than 2%.
In the U.S. market, ServiceNow shares dropped approximately 7%. This pushed the company’s year-to-date losses to 28%. Salesforce shares fell nearly 7%. Its decline in 2026 reached about 26%. Intuit, owner of TurboTax, recorded an 11% drop. Its year-to-date losses exceeded 34%. These movements contributed to a 1.4% decline in the Nasdaq Composite index during Tuesday’s session.