Asian stock markets opened lower today, weighed down by a pullback in tech shares, yet China’s AI-driven rally offered a bright spot amid the decline. Japanese markets slipped — the Nikkei dropped 2.0%, led primarily by a sharp 9% slump in Advantest — and South Korea’s KOSPI dipped 0.7%. Overall, the MSCI Asia-Pacific index outside Japan fell about 0.1% after hitting a four-year high last week.
However, not all tech is in retreat: Alibaba surged nearly 19%, fueled by enthusiasm over its AI advancements and optimism around Chinese manufacturing, with the General Manufacturing PMI climbing to a solid 50.5.
Trading volumes remained light, thanks to U.S. markets being closed for Labor Day. Yet anticipation is building ahead of Friday’s U.S. non-farm payrolls report, which could shape expectations for an upcoming Fed rate decision on September 17.
The mood was further tempered by a U.S. appellate court ruling declaring several of Donald Trump’s tariffs illegal — a development that introduces additional uncertainty in global trade dynamics. This, combined with softness in tech—and chip stocks specifically—contributed to weaker market sentiment.
“Alibaba led the charge today—up 19%—proving AI is the antidote to weak tech sentiment.”
Why This Matters
Markets in Flux: Pullbacks in key tech indices signal investor caution heading into critical economic data.
China’s AI Momentum: Alibaba’s rally underscores continued faith in its AI future—despite broader global tech unease.
Fed Watch: Friday’s jobs data could influence whether the Fed holds or cuts rates later this month.
Trade Uncertainty Lingers: Legal setbacks to U.S. tariffs may reignite trade policy debates, affecting sentiment globally.