Asian Markets Braced for Sell-Off as “AI Angst” and Tariff Turmoil Batter Wall Street

Market Sentiment - Asian markets are expected to open lower due to "AI angst" affecting investor sentiment regarding artificial intelligence profitability and risks [2] - The Nasdaq Composite fell 1.1% and the Dow Jones Industrial Average dropped over 800 points, indicating a tech-led retreat on Wall Street [9] Software Sector Impact - A significant re-evaluation of the software sector was triggered by IBM's shares plummeting 13.1%, marking its worst single-day performance since 2000, after Anthropic's announcement regarding its Claude Code tool [3][9] - The iShares Expanded Tech-Software Sector ETF (IGV) has declined over 27% year-to-date, reflecting a deep correction in the software segment [4] Financial Sector Reaction - The financial and payment sectors also faced selling pressure, with American Express (AXP) falling 7.2% and PayPal Holdings (PYPL) experiencing heavy losses due to concerns over AI-driven automation [4] Geopolitical and Trade Concerns - A new 15% global tariff announced by the Trump administration, following a Supreme Court ruling, has raised concerns about trade stability and dampened the appeal of risk-sensitive assets in Asia [5][9] Nvidia's Performance - Despite the overall market downturn, Nvidia (NVDA) saw a slight gain of 0.9% as traders anticipated a strong earnings report, with expectations of a 71.9% year-over-year increase in earnings [6] Currency and Commodity Markets - The "risk-off" sentiment is evident in currency and commodity markets, with the U.S. Dollar rising against the Japanese Yen and Treasury yields falling as investors seek safety [7] - Gold surged to over $5,200 per ounce while Bitcoin fell below the $65,000 threshold, indicating a shift towards safe-haven assets [9]