Asian stocks today: Markets trade mostly in red amid tech bubble worries; Nikkei dips over 180 points, Kospi sheds 1.6%

Asian stocks traded mostly in red on Tuesday as investors weighed Wall Street’s tech rally amid concerns of tech bubble formation in the sector. Traders were also remaining cautious as Fed officials gave mixed signals about the next interest rate move. Japan’s Nikkei traded in red, down 188 points or 0.36% to reach 52,222 at 9:30, AM IST.Shanghai and Shenzhen, also plunged 0.19% and 1.27%, respectively.South Korean Kospi also slipped 1.62%, to trade at 4,153.Meanwhile in Hong Kong, HSI gained 45 points to reach 26,203.A wave of multi-billion-dollar spending on artificial intelligence has driven a global rally in technology shares this year. Valuations have climbed to record levels, helped by a calmer trade environment following US President Donald Trump’s tariff announcement in April and expectations that borrowing costs will continue to fall.However, analysts say the advance is increasingly being powered by a fear of missing out, raising speculation that a sharp correction could follow as gains become concentrated primarily in technology stocks.Adding to the sector’s momentum, ChatGPT-creator OpenAI signed a $38 billion deal with Amazon’s AWS cloud business, the latest in a string of major partnerships that also include Oracle, Broadcom, AMD and Nvidia.On Wall Street, the Nasdaq and the S&P 500 closed higher on Monday, though the Dow fell into negative territory.However, Asia failed to replicate Monday’s momentum. Hong Kong, Wellington, Manila and Jakarta posted gains, while Tokyo, Sydney, Singapore, Seoul and Taipei slipped. Shanghai was unchanged.Comments from Federal Reserve policymakers added to the cautious mood. Chair Jerome Powell signalled last week that a third rate cut this year was not guaranteed, even after reductions at the past two meetings.Governor Lisa Cook warned that inflation may stay elevated as tariffs filter through the economy, noting that some companies were choosing to clear excess stock rather than immediately pass higher costs on to consumers.Fresh economic data released Monday pointed to more strain in the US economy, with a key manufacturing activity index contracting for the eighth consecutive month in October as demand and output weakened.