Software stocks fell across Asia on Tuesday, from India to Japan, mirroring declines in U.S. tech equities, amid concerns that advances in artificial intelligence (AI) could disrupt traditional business models.
In India, Tata Consultancy Services Ltd. shares dropped 6%, while Infosys Ltd. fell more than 5%. In Australia, cloud-based accounting software firm Xero Ltd. tumbled over 15%, and Japan’s Nomura Research Institute Ltd. declined 8%.
The losses followed the launch of a new productivity tool by AI startup Anthropic for in-house lawyers, signaling direct competition with software-as-a-service companies. Shares tied to legal software and data services were hit hardest, triggering broader declines across software stocks in the region.
Despite the tech slump, other sectors saw gains. Financials and industrials rose as investors rotated out of technology stocks, betting on more traditional businesses benefiting from market shifts.
Meanwhile, oil prices rose after the U.S. Navy shot down an Iranian drone headed for an aircraft carrier in the Arabian Sea. The yen weakened ahead of Japan’s national election this weekend, and gold climbed above $5,000 an ounce on dip-buying activity. European stock futures edged lower, reflecting cautious sentiment ahead of global market developments.
