Asian markets track Wall Street losses as Nikkei plunges 2.5%

Asian stock markets fell sharply, with Japan’s Nikkei index losing over 2.5%, mirroring Wall Street’s overnight weakness. Technology and semiconductor stocks led the decline, following heavy losses in the US Nasdaq. Investors across Asia remain cautious amid persistent inflation concerns and weak corporate earnings guidance. Analysts forecast gradual recovery as central banks in the region prioritize growth stability. Despite near-term headwinds, foreign inflows are expected to return once global sentiment steadies, especially in South Korea and Taiwan where valuation metrics have become more attractive post-correction.