Software Stocks in Asia Drop After the US Tech Selloff – Asia Market Wrap

Software equities fell from India to Japan, tracking drops in their US rivals, amid concerns that breakthroughs in artificial intelligence may challenge established business models.

Shares of Indian information technology behemoth Tata Consultancy Services fell 6%, while Infosys fell more than 5%. Australian cloud-based accounting software manufacturer Xero fell more than 15%, while Japan’s Nomura Research Institute fell 8%.

Oil prices increased after the US Navy shot down an Iranian drone on its way to an aircraft carrier in the Arabian Sea. The Yen dropped as markets braced for a Japanese election this weekend. Gold rose above $5,000 per ounce on dip buying. European stock futures edged lower.

Declines in Asian software shares were partially offset by increases in more traditional industries such as finance and manufacturing, which are expected to benefit from a shift away from technology. The MSCI Asia Pacific gauge was little changed.

Oil prices rose for a second day as geopolitical tensions revived following the US’ downing of an Iranian drone near an American aircraft ship in the Arabian Sea. Brent rose to around $68 per barrel after adding 1.6% on Tuesday.