Asian software and IT stocks fell sharply after a heavy sell-off in U.S. technology markets, as investors grew increasingly nervous about the disruptive impact of new artificial intelligence tools on traditional software and services businesses.
The market jitters were triggered by recent announcements from U.S.-based AI startup Anthropic, which unveiled advanced automation features for its AI model, Claude. The tools are designed to perform complex tasks across areas such as legal research, marketing, sales, coding and data analysis. While Anthropic has said the outputs are meant to assist professionals rather than replace them, investors fear that such technology could significantly reduce demand for conventional software products and subscription-based services.
These concerns sparked a sharp global reaction. In the U.S. and Europe, software, data and professional services companies suffered steep losses, wiping out nearly $300 billion in market value in a single session. Shares of major information and analytics firms, including legal and financial data providers, dropped by double digits, dragging down broader tech indices such as the Nasdaq and the S&P 500.
The negative sentiment quickly spilled over into Asian markets. Software and IT stocks across the region declined as investors reacted to the overnight rout in global tech shares. India’s IT sector was among the worst hit, with shares of leading exporters such as Infosys, Tata Consultancy Services (TCS), Wipro and HCLTech falling as much as 6–7%. The sector is particularly vulnerable because a large share of its revenue comes from U.S. and European clients, where spending sentiment is closely tied to technology trends.
China’s software services stocks also came under pressure, with sector indices falling around 3%. Technology shares in Hong Kong and parts of Japan weakened as well, reflecting broader concerns that rapid AI adoption could disrupt existing business models faster than companies can adapt.
However, the sell-off was not uniform across the tech space. Hardware and semiconductor stocks held up better in parts of Asia, supported by expectations that demand for AI-related chips and infrastructure will continue to grow. South Korea’s market, for instance, found support from chipmakers seen as direct beneficiaries of the AI boom.
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