Tech Sell-Off Drags Asian Markets Lower Amid AI Cost Concerns

Asian stock markets experienced a sharp decline on June 26, 2026, fueled by a broad sell-off in technology shares. South Korea's Kospi index closed 5.8% lower, triggering a temporary trading halt after an initial 8% drop. In Japan, the Nikkei 225 fell more than 4%, with SoftBank Group shares tumbling 12.5%.

The slump followed announcements from Apple and Microsoft regarding price increases for iPads, MacBooks, and Xbox consoles. Both companies cited rising component costs as the driver for the hikes. These moves contributed to a wider trend of volatility, including a 6% drop in Apple shares in the United States on Thursday, marking the company's largest one-day decline in over a year.

Investors are reassessing technology valuations due to concerns that the high costs of artificial intelligence infrastructure are being passed to consumers, potentially dampening demand for devices. While Japanese banking stocks and automakers like Toyota and Honda saw modest gains, they were unable to offset the tech-led losses. In Tokyo, core consumer prices rose 1.6% year-on-year in June, the fastest increase in three months, though inflation remained below the Bank of Japan's 2% target for a fifth consecutive month.