Most Asian stocks declined on Monday, following significant losses on Wall Street due to ongoing concerns over a slowing U.S. economy and rising trade tariffs under President Donald Trump. A tech-driven rally in Hong Kong paused as investors grew cautious about the tech sector ahead of NVIDIA Corporation’s (NASDAQ: NVDA) earnings report this week. The downturn in Asian markets largely mirrored Friday’s steep losses on Wall Street, where weak economic data and tariff tensions weighed heavily on investor sentiment. Wall Street futures showed signs of recovery during Asian trading hours on Monday. A market holiday in Japan kept trading volumes subdued, though the Nikkei rose by 0.4%. Tech-heavy Asian indices led the declines, with South Korea’s KOSPI down 0.6%. Hong Kong’s Hang Seng index remained flat despite gains in some locally listed Chinese stocks, while tech shares, which had driven a strong rally over the past month, mostly retreated. Alibaba Group Holding Ltd (HK: 09988) (NYSE: BABA) was an exception, recovering from initial losses after announcing plans to invest approximately 380 million yuan ($52 billion) in AI over the next three years. Regional tech shares followed Friday’s declines in U.S. peers, as investors sold AI-related stocks ahead of Nvidia’s earnings. Nvidia had fallen more than 4%. The company’s earnings, due on Wednesday, will be closely watched to assess the viability of the AI trade, especially after China’s DeepSeek release in January raised doubts about AI investment. Major Nvidia supplier SK Hynix Inc (KS: 000660) dropped 3.6%, while TSMC (TW: 2330) (NYSE: TSM), Nvidia’s largest Asian supplier, fell 1.8%. Taiwan media reported that Nvidia secured over 70% of TSMC’s advanced chip packaging capacity for 2025 amid strong AI-driven demand. Australia’s ASX 200 index was flat after a five-day losing streak, supported by bargain hunting in major bank stocks, which had lost about $40 billion in value over the past eight sessions. Other sectors were mixed, with notable individual movers. Software firm Wisetech Global Ltd (ASX: WTC) plunged 23% after most of its board resigned due to disagreements with founder and former CEO Richard White. Australian shares of Block Inc (ASX: SQ2) (NYSE: SQ) fell over 10% following weaker-than-expected earnings. Weakness in commodity prices dragged down BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). The ASX 200 had surged to record highs earlier in February, boosted by an interest rate cut by the Reserve Bank, which warned that further easing depended on a drop in inflation, which has remained stubbornly high. Broader Asian markets traded in a narrow range. Japan’s Nikkei added 0.1%, while Singapore’s STI gained 0.5%. China’s Shanghai Composite and Shenzhen indexes edged lower after strong gains over the past month fueled by optimism over the country’s AI capabilities. Futures for India’s Nifty 50 index indicated a positive open, with local stocks poised to benefit from bargain buying after a prolonged downturn since mid-2024. — news from Investing.com