# Asian Stocks Mostly Decline Amid Renewed Pressure on Tech Firms

*Most Asian markets experienced a downturn as tech firms faced renewed pressure following a brief rally.*

August 6, 2026 · business

## At a glance

- Most Asian markets declined as tech firms faced renewed pressure.
- Seoul's Kospi and Tokyo's Nikkei saw significant losses.
- Disappointing earnings from US tech giants contributed to the sell-off.
- Geopolitical tensions in the Middle East influenced market reactions.

Most Asian markets declined on Thursday as tech firms came under renewed pressure following a four-day rebound, driven by lingering concerns over artificial intelligence (AI) investments. The downturn followed disappointing earnings from US tech giants SanDisk and Western Digital, which reignited worries about the profitability of AI investments. Key indices in Seoul, Tokyo, Hong Kong, Wellington, and Taipei saw significant losses, while Shanghai, Sydney, and Singapore posted gains. Meanwhile, oil prices rose slightly despite Iran's announcement of a deal with Oman over the Strait of Hormuz.

## Tech Sector Retreats

The tech sector's retreat began on Wall Street, where a decline in tech stocks pulled Asian markets lower. Seoul's Kospi index, which had seen an 18 percent surge last week, shed more than five percent at one point, led by declines in SK hynix and Samsung. Tokyo's Nikkei also lost around two percent, with significant drops in chipmaker Kioxia and Tokyo Electron. SoftBank, a major tech investor, fell six percent ahead of its earnings report.

## Market Reactions and Geopolitical Factors

The market's reaction was influenced by both domestic and international factors. Disappointing earnings from US tech firms SanDisk and Western Digital contributed to the sell-off. Additionally, geopolitical tensions in the Middle East played a role, with oil prices edging up after Iran announced a deal with Oman over the Strait of Hormuz. However, the deal's success depends on the US ending its naval blockade of Iran's ports, according to Iranian officials.

## Investor Sentiment and Upcoming Data

Investors are now looking ahead to key US jobs data due for release on Friday, hoping for insights into the state of the economy as the Federal Reserve considers its next moves on borrowing costs. Recent figures showed that hiring in the US private sector was significantly below expectations in July, with industries like leisure and hospitality shedding jobs. This data will be crucial in shaping market sentiment and future investment decisions.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/business/asian-stocks-mostly-down-tech-firms-under-pressure