Morning brief: Asian stocks slide as tech sell-off deepens, Nvidia–OpenAI deal nears

Asian markets traded mostly lower on Wednesday, tracking a broad sell-off in US technology stocks overnight, while gold extended gains for a second session.

Investor sentiment across the region was weighed down by losses in global tech, fresh uncertainty around artificial intelligence disruption, and a series of policy and legal developments in the United States.

Asian markets track Wall Street losses

Equity markets across Asia-Pacific were mixed but largely weaker.

Japan’s Nikkei 225 fell 0.5%, dragged down by technology and semiconductor-related names.

Chip equipment maker Lasertec plunged 7%, while Tokyo Electron slid 1.8%. Konami Group dropped 7.15%.

The broader Topix index, however, gained 0.32%.

Australia’s S&P/ASX 200 reversed early losses to close 0.80% higher, while South Korea’s Kospi advanced 1.51% and the Kosdaq gained 0.32%.

Hong Kong’s Hang Seng Index gained 0.25%, and mainland China’s CSI 300 rose by 0.61%.

Nintendo shares dropped more than 11%, despite the company maintaining its full-year sales forecast for the Switch 2 console.

Investors remained focused on potential headwinds, including whether Nintendo could be affected by a sharp rise in memory prices, a key component in gaming hardware.

In commodities, spot gold rose more than 2.24% to $5,057 an ounce, extending gains as risk sentiment weakened.

Spot silver added 2.4% to $87.22 an ounce.

Nvidia’s funding talks with OpenAI

Nvidia is nearing a deal to invest roughly $20 billion in OpenAI as part of the ChatGPT maker’s latest funding round, Bloomberg reported, citing people familiar with the matter.

The investment would mark Nvidia’s single largest deal to date. The contribution is close to being completed, though the deal is not final and terms could still change.

OpenAI is seeking to raise up to $100 billion in the round, which could value the company at around $830 billion, according to the report.

Nvidia Chief Executive Jensen Huang has publicly signalled support for the investment, saying the company plans to make a “huge” investment in OpenAI and would consider participating in its next fundraising round and eventual IPO.

At the same time, the Financial Times reported that Nvidia’s H200 chip sales to China have been delayed due to a US national security review, adding another layer of uncertainty for the chipmaker.

New York and New Jersey sue Trump administration

In the United States, the Trump administration was sued again on Tuesday, this time by the states of New York and New Jersey, over the suspension of federal financing for the $16 billion Gateway rail tunnel project under the Hudson River.

The states alleged that the funding cutoff was a “politically motivated attempt to punish and coerce those with whom the President disagrees.”

New York Attorney General Letitia James warned that losing the project “could be disastrous for commuters, workers, and our regional economy.”

The Gateway Development Commission said it would have to halt work on Feb. 6 if funding is not restored.

Anthropic sparks global software sell-off

A fresh wave of selling hit global software stocks after Anthropic released a new AI automation tool, triggering fears of disruption across legal, financial services, and data providers.

A Goldman Sachs basket of US software stocks fell 6%, its worst one-day drop since April, while an index of financial services firms tumbled nearly 7%.

Asian software names also slid.

Tata Consultancy Services fell as much as 6.5%, Infosys dropped 8.1%, and Australia’s Xero plunged up to 15.9%.

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