Asian Markets Mixed As AI Fears Hammer Software Stocks

(RTTNews) - Asian stocks ended mixed on Wednesday as software stocks followed their U.S. peers lower on fears over artificial intelligence effecting future business growth.

Anthropic, the AI developer known for its Claude chatbot, rolled out new legal tools for its Cowork product, leading investors worldwide to cut exposure to traditional IT services.

Gold prices were up nearly 3 percent at $5,080 an ounce in Asian trade and oil extended overnight gains after the U.S. Navy shot down an Iranian drone headed toward an aircraft carrier in the Arabian Sea.

China's Shanghai Composite index surged 0.85 percent to 4,102.20 as solar shares jumped following reports that teams from SpaceX and Tesla Inc. had visited domestic companies.

Hong Kong's Hang Seng index finished marginally higher at 26,847.32 as precious metals continued to gain ground after a recent sell-off.

Japanese markets fell notably, with software names leading the drop after fresh AI headlines. The Nikkei average dropped 0.78 percent to 54,293.36 while the broader Topix index settled 0.27 percent higher at 3,655.58.

IT service management company TIS plunged 15.8 percent, while NS Solutions and Trend Micro both slumped by 7.4 percent. Chip-linked bellwethers like Advantest and Tokyo Electron fell over 2 percent each.

Seoul stocks hit a new peak on strong buying by institutional investors. The Kospi average surged 1.57 percent to 5,371.10 after the ruling Democratic Party's floor leader vowed to swiftly push forward with capital market reform measures.

Australian markets advanced as a rebound in copper and gold prices boosted mining stocks. The benchmark S&P/ASX 200 climbed 0.80 percent to 8,927.80 while the broader All Ordinaries index closed 0.60 percent higher at 9,204.60.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.34 percent at 13,467.29.

U.S. stocks fell from near-record levels overnight amid a rotation out of technology stocks into economically sensitive shares.

The tech-heavy Nasdaq Composite tumbled 1.4 percent, the S&P 500 shed 0.8 percent and the Dow dropped 0.3 percent.