{"id":58999,"date":"2026-02-23T19:08:29","date_gmt":"2026-02-23T23:08:29","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/asian-markets-braced-for-sell-off-as-ai-angst-and-tariff-turmoil-batter-wall-street\/58999\/"},"modified":"2026-02-23T19:08:29","modified_gmt":"2026-02-23T23:08:29","slug":"asian-markets-braced-for-sell-off-as-ai-angst-and-tariff-turmoil-batter-wall-street","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-braced-for-sell-off-as-ai-angst-and-tariff-turmoil-batter-wall-street\/58999\/","title":{"rendered":"Asian Markets Braced for Sell-Off as &#8220;AI Angst&#8221; and Tariff Turmoil Batter Wall Street"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Asian equity futures point to a sharp opening decline<\/strong> following a tech-led retreat on Wall Street, where the <strong>Nasdaq Composite<\/strong> fell 1.1% and the <strong><a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> dropped over 800 points.<\/li>\n<li><strong>AI displacement fears<\/strong> triggered a massive sell-off in legacy software and payment firms, led by a <strong>13.1% plunge<\/strong> in International Business Machines (<a href=\"\/stock\/IBM\">IBM<\/a>)\u2014its worst single-day performance since 2000.<\/li>\n<li><strong>Renewed trade uncertainty<\/strong> is weighing on global sentiment after the White House announced a new <strong>15% global tariff<\/strong> following a Supreme Court ruling that struck down previous trade levies.<\/li>\n<li><strong>Safe-haven assets are rallying<\/strong> as investors rotate out of high-growth tech; <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a><\/strong> surged to over <strong>$5,200 per ounce<\/strong> while <strong>Bitcoin<\/strong> slumped below the $65,000 threshold.<\/li>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> remains the market&#39;s primary focal point, with its high-stakes earnings report scheduled for Wednesday, February 25, expected to determine the near-term trajectory of the AI sector.<\/li>\n<\/ul>\n<p>Asian markets are poised for a difficult opening session on Tuesday as the &quot;AI angst&quot; that gripped New York spreads to the Pacific. Futures for the <strong>Nikkei 225<\/strong>, <strong>Hang Seng<\/strong>, and <strong>Kospi<\/strong> are all trading significantly lower, reflecting a broader shift in sentiment regarding the immediate profitability and disruptive risks of artificial intelligence.<\/p>\n<p>The primary catalyst for the downturn was a dramatic re-evaluation of the software sector. International Business Machines (<a href=\"\/stock\/IBM\">IBM<\/a>) saw its shares crater after <strong>Anthropic<\/strong> announced that its new <strong>Claude Code<\/strong> tool could modernize COBOL, a legacy programming language that underpins much of IBM&#39;s core mainframe business. This development ignited fears that emergent AI tools are now capable of displacing established business models faster than previously anticipated.<\/p>\n<p>The selling pressure extended to the financial and payment sectors. American Express (<a href=\"\/stock\/AXP\">AXP<\/a>) fell <strong>7.2%<\/strong>, and PayPal Holdings (<a href=\"\/stock\/PYPL\">PYPL<\/a>) faced heavy losses as investors weighed the impact of AI-driven automation on white-collar employment and transaction processing. The <strong>iShares Expanded Tech-Software Sector ETF (IGV)<\/strong> has now declined more than <strong>27% year-to-date<\/strong>, signaling a deep correction in what was once the market&#39;s most favored segment.<\/p>\n<p>Compounding the tech rout is a fresh wave of geopolitical and trade uncertainty. Following a <strong>Supreme Court<\/strong> ruling that voided previous trade restrictions, the <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> administration announced a new <strong>15% global tariff<\/strong> under Section 122. This move has prompted immediate pushback from the <strong>European Union<\/strong> and raised concerns about the stability of the <strong>CUSMA<\/strong> trade pact, further dampening the appeal of risk-sensitive assets in Asia\u2019s export-heavy economies.<\/p>\n<p>Despite the broader carnage, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) managed a slight gain of <strong>0.9%<\/strong> on Monday, as traders positioned themselves ahead of the company&#39;s fiscal fourth-quarter results. Analysts expect the chipmaker to report a <strong>71.9% year-over-year increase<\/strong> in earnings, but the focus has shifted from simple growth to the long-term return on investment (ROI) for AI infrastructure.<\/p>\n<p>In the currency and commodity markets, the &quot;risk-off&quot; mood is palpable. The <strong>U.S. Dollar<\/strong> inched higher against the <strong>Japanese Yen<\/strong>, while <strong>Treasury yields<\/strong> fell as investors sought the safety of government bonds. Market participants in Asia will be closely watching the performance of regional tech giants like SoftBank Group (<a href=\"\/stock\/SFTBY\">SFTBY<\/a>) and Taiwan Semiconductor Manufacturing Co. (<a href=\"\/stock\/TSM\">TSM<\/a>) to see if they can withstand the intensifying skepticism surrounding the AI revolution.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Asian equity futures point to a sharp opening decline following a tech-led retreat on Wall Street, where the 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