By Admin 
Asian Stock Market Fall: Heavy selling in US technology stocks has badly affected the sentiment of global investors, the effect of which is clearly visible from American markets to Asian stock markets. American stock markets closed with losses for the third consecutive day on Thursday, while an atmosphere of uneasiness remained in Asian markets as well. Hong Kong’s Hang Seng Index (HSI) was seen trading with a decline of 1.13 percent or about 304 points at around 10.30 am.
South Korea’s Kospi slipped nearly 2 percent for the second consecutive day to 5,057. However, there was a mixed trend in China’s markets, where Shenzhen closed with a gain of about 0.6 percent while Shanghai saw a marginal rise of 0.1 percent. On the other hand, Japan’s Nikkei was seen trading with a strength of 0.33 percent i.e. about 175 points.
Why is the market falling?
The main reason for this decline in the market is believed to be the increasing concern of investors. Especially questions are being raised regarding the continuously increasing investment in the Artificial Intelligence (AI) sector. Investors are beginning to fear that when and how will they get solid returns on the huge expenditure on AI. This uncertainty has increased the selling pressure in technology stocks, the effect of which now seems to be spreading in the global markets.
The impact of this negative trend is not limited to the stock market only, but it has also affected other investment options. The shine that was witnessed in silver, bitcoin and other risk assets after Donald Trump became President again in the US elections, now seems to be fading. Investors are currently adopting a cautious approach by staying away from risk.
An announcement and panic in the market
A major reason for this sudden stir in the market is also being considered to be the recent announcement by Anthropic, an AI startup making cloud-based chatbots. The company has claimed that it has developed a tool that can perform the work of multiple software applications simultaneously, which include areas like legal services and data marketing. After this announcement, the concern deepened in the minds of investors that AI technology can affect jobs and business models on a large scale in many sectors, due to which there has been increased volatility in the market.
Earlier on Thursday, there was a sharp decline in all the major indices of Wall Street and the tech-heavy Nasdaq was especially under pressure. The decline seen in the American markets in the last three days is being compared to the situation created after some big announcements of President Trump in April, when huge fluctuations were seen in the markets.
Apart from this, weak economic data has also increased the pressure on the American economy. According to reports, the biggest decline in job openings has been recorded after 2020, while in the month of January, the highest number of layoff announcements have been made by companies since the global recession of 2009. All these reasons together have created an atmosphere of uncertainty and fear in the global markets.
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