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

• South Korean chipmakers Samsung and SK Hynix declined as concerns spread from U.S. tech markets after AI firm Anthropic's new legal tool raised worries about broader impacts on IT and software sectors
• Indonesia's rupiah fell to 16,885 per dollar (weakest since Jan 22) and foreign investors pulled $1 billion from equities in 2025 amid growing concerns over fiscal deficits and central bank independence
• Thailand and Japan hold elections on February 8, with Japan's expected ruling coalition win likely to reduce prospects for larger fiscal stimulus

Market Summary: Asian Stocks Decline on Tech Selloff and Indonesia Credit Concerns

Key Market Movements:

Asian markets experienced broad-based declines on February 6, with the MSCI emerging Asian equities gauge dropping 0.5%. South Korea's KOSPI index fell 1.7%, while Indonesia's Jakarta Composite Index tumbled 2% in early trading. The broader Asian equities gauge (excluding Japan) declined nearly 2%.

Tech Sector Weakness:

The regional IT gauge dropped 2.4%, led by South Korean chipmakers Samsung Electronics (down 1.2%) and SK Hynix (down 0.2%). The selloff was triggered by concerns following Anthropic's unveiling of a new legal tool for its Claude chatbot, raising worries about broader implications for IT and software service sectors. Analysts characterized the movement as profit-taking rather than a fundamental breakdown of the tech theme.

Indonesia Under Pressure:

Moody's downgraded Indonesia's credit rating outlook on Thursday, exacerbating investor concerns. The rupiah weakened to 16,885 per dollar, its lowest since January 22. Foreign investors have withdrawn $1 billion from Indonesian equities in 2025, with outflows accelerating after MSCI warned of a potential downgrade to frontier-market status. Policy uncertainty under President Prabowo Subianto, including fiscal deficit concerns and central bank independence issues, continues to weigh on sentiment.

Currency Movements:

The South Korean won weakened to 1,470.60 per dollar, its lowest level in over two weeks. The Thai baht appreciated 0.2%.

Political Events:

Thailand holds a general election on February 8, with Japan conducting a snap election the same day. A ruling coalition victory in Japan could reduce the likelihood of larger fiscal stimulus.

Other Markets:

Malaysia, Philippines, and Taiwan remained largely unchanged. Singapore declined 0.7%, while Thailand's SET Index rose 0.5%.