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Tech-led selloff drags Asian stocks; Indonesia tumbles on Moody’s outlook cut
| USA | economy

Tech-led selloff drags Asian stocks; Indonesia tumbles on Moody’s outlook cut

#Moody’s #Jakarta Composite Index #Samsung #Semiconductors #Indonesian Rupiah #Fiscal Deficit #Prabowo Subianto #Asian Equities

📌 Key Takeaways

  • Asian markets faced a broad decline led by a 2.4% drop in the regional information technology sector.
  • Moody’s lowered Indonesia's credit rating outlook, causing the Jakarta Composite Index to tumble more than 2%.
  • South Korean chipmaking giants Samsung and SK Hynix saw significant share price drops as investors de-risked portfolios.
  • Regional currencies like the Indonesian rupiah and South Korean won weakened significantly against the U.S. dollar.

📖 Full Retelling

International investors and regional traders triggered a widespread retreat from Asian equity markets on February 6, 2026, as a global technology selloff and sovereign credit concerns in Southeast Asia dampened risk appetite. The selloff was primarily driven by a sharp decline in South Korean heavyweights like Samsung and SK Hynix, coupled with a significant downgrade of Indonesia’s credit outlook by Moody’s. This negative sentiment was exacerbated by disappointing capital expenditure guidance from major U.S. tech firms and emerging concerns over AI-driven disruptions in the software sector, prompting many investors to lock in profits after a period of high valuation growth. In Indonesia, the Jakarta Composite Index plummeted by over 2.5% while the rupiah hit its weakest level against the dollar in over two weeks. The market turmoil follows growing international scrutiny of President Prabowo Subianto’s economic policies, specifically regarding central bank independence and a widening fiscal deficit. Analysts from DBS noted that the change in Moody’s outlook has created a knee-jerk reaction in onshore markets, potentially limiting foreign appetite for long-term Indonesian assets until domestic policy responses provide more clarity and stability. Across the broader region, the South Korean KOSPI index fell nearly 1.7%, reflecting the vulnerability of the semiconductor-heavy market to shifts in U.S. tech sentiment. While Thailand’s SET Index managed a slight gain of 0.5% ahead of its upcoming general election, other markets including Singapore saw declines. The regional volatility is set against a backdrop of significant political milestones, with both Thailand and Japan preparing for pivotal elections that could dictate future fiscal stimulus measures and regional trade dynamics in the coming months.

🐦 Character Reactions (Tweets)

InvestoBro

Looks like Indonesia's credit outlook just took a dive! Who knew Moody's could throw shade harder than an ex on social media after a breakup? #MarketDrama

TechSavvySnake

South Korea's market fell faster than my motivation on a Monday morning. Can someone hand me a safety net made of cash? #TechSelloff

EconomistExtraordinaire

The only thing dropping faster than Indonesia's stock prices is my enthusiasm for understanding what 'Moody's outlook' means 🥲 #FinancialFollies

PunditPanda

Investing in Asia right now is like going to a buffet after a breakup; everything looks tempting until you realize it's all gone bad. #MarketMeltdown

💬 Character Dialogue

scorpion: Markets are like warriors in battle; when the tech giants fall, all must brace for impact. Get over here, Indonesia!
darth_vader: The darkness of uncertainty looms over these markets, as the Force of investor sentiment weakens. Only those who embrace their destiny will prevail.
asuka: Baka! Can’t you see? The real battle isn’t in the stocks, it’s in figuring out how to make people care!
scorpion: You underestimate the power of market perception. A slight downgrades can wreak havoc on an empire!
darth_vader: Indeed, but even the strongest of warriors can fall. It is the balance of the Force, and only through patience shall we see a recovery.

🏷️ Themes

Financial Markets, Geopolitics, Technology

📚 Related People & Topics

Semiconductor

Material of moderate electrical conductivity

A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. Its conductivity can be modified by adding impurities ("doping") to its crystal structure. When two regions with different doping levels are present in the same crystal, they form a semiconductor...

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Deficit

Topics referred to by the same term

A deficit is the amount by which a sum falls short of some reference amount.

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Samsung

Samsung

South Korean multinational conglomerate

Samsung Group (Korean: 삼성; pronounced [sʰamsɔŋ]; stylised as SΛMSUNG) is a South Korean multinational manufacturing conglomerate headquartered in the Samsung Town office complex in Seoul. The group consists of numerous affiliated businesses, most of which operate under the Samsung brand, and is the ...

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Indonesian rupiah

Indonesian rupiah

Currency of Indonesia

The rupiah (symbol: Rp; currency code: IDR) is the official currency of Indonesia, issued and controlled by Bank Indonesia. Its name is derived from the Sanskrit word for silver, rupyakam (रूप्यकम्). Sometimes, Indonesians also informally use the word perak ('silver' in Indonesian) in referring to r...

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Jakarta Stock Exchange

Jakarta Stock Exchange

Former stock exchange of Indonesia

Jakarta Stock Exchange (JSX; Indonesian: Bursa Efek Jakarta, BEJ) was a stock exchange based in Jakarta, Indonesia, before it merged with the Surabaya Stock Exchange to form the Indonesia Stock Exchange.

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations Gold, silver prices log shaky gains after bruising week 3 reasons why Bitcoin is falling Amazon’s capex plans, Stellantis, Bitcoin’s fall - what’s moving markets (South Africa Philippines Nigeria) Tech-led selloff drags Asian stocks; Indonesia tumbles on Moody’s outlook cut Stock Markets Published 02/06/2026, 12:14 AM Updated 02/06/2026, 12:24 AM Tech-led selloff drags Asian stocks; Indonesia tumbles on Moody’s outlook cut 0 Korean Won US Dollar 0.40% JKSE -2.55% ID10YT=RR 0.00% KS11 -1.44% 000660 -0.36% 005930 -0.44% Indonesian Rupiah US Dollar 0.03% By Sneha Kumar and Roshan Thomas Feb 6 - South Korean equities extended declines on Friday as investors continue to retreat from tech stocks, while Indonesian shares fell over 2% after Moody’s lowered the country’s credit rating outlook, the latest blow to Southeast Asia’s largest economy. The MSCI gauge of emerging Asian equities slipped 0.5%, pressured by a 1.7% drop in South Korea’s KOSPI index , while a broader gauge of Asian equities excluding Japan fell as much as nearly 2%. In Seoul, chipmakers Samsung Electronics and SK Hynix fell 1.2% and 0.2%, respectively, sending the regional information technology gauge about 2.4% lower. Markets were jolted this week after AI firm Anthropic unveiled a new legal tool for its Claude chatbot, raising worries over broader disruption to information technology and software service sector. [.N] "With U.S. tech wobbling, sentiment tend to trickle over to Asian tech as well, particularly after a strong run that left positioning looking stretched," said Zavier Wong, market analyst at eToro. "What we’re seeing now feels more like investors de-risking and locking in gains rather than a sign that the broader tech theme is breaking down." In Southeast Asia, Indonesia’s Jakarta Composite Index dropped 2% in early trade and the rupiah weakened to 16,885...

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