Asian markets slide as South Korea sinks 4.4%; U.S. futures mixed

Asian markets traded lower on Tuesday, with South Korea leading regional losses as a technology-led sell-off on Wall Street continued to weigh on investor sentiment.

Japan’s Nikkei 225 (NKY:IND) fell 1.4% to 64,054.00, while South Korea’s benchmark declined 4.4% to 5,516.42. Hong Kong’s Hang Seng Index (HSI) dropped 1.24% to 23,884.5, Shanghai’s Composite Index (SHCOMP) slipped 0.44% to 3,714, and Australia’s S&P/ASX 200 (AS51) lost 0.33% to 8,816.90.

Regional markets have remained under pressure over the past few sessions as concerns over elevated technology valuations and profit-taking in AI-related stocks have dampened risk appetite. The weakness in U.S. technology shares has spilled over into Asian markets, particularly those with significant exposure to semiconductor and AI-linked companies.

On Wall Street, U.S. stocks closed mostly higher on Monday as investors bought the dip following last week’s declines. Technology stocks led the rebound ahead of a busy week of corporate earnings. The S&P 500 (SP500) rose 0.4%, while the tech-heavy Nasdaq Composite (COMP:IND) advanced 1.1%. The blue-chip Dow Jones Industrial Average (DJI), however, slipped 0.1%.

U.S. stock futures were mixed on Tuesday. Futures tied to the Dow Jones Industrial Average (INDU) gained 80 points, while S&P 500 futures (SPX) were little changed. Nasdaq 100 futures (US100:IND) slipped 0.24%, pointing to a potentially uneven start to the trading session.

On the economic calendar, investors will focus on Housing Starts, Building Permits and the Pending Home Sales Index for clues about the health of the U.S. housing market. With Treasury yields hovering near multi-decade highs, the data could provide further insight into how elevated borrowing costs are affecting housing demand and affordability.