Sharp Decline in Asian Tech Stocks: Nikkei 225 and Kospi Fall

The Nikkei 225 fell sharply by more than 8% in the last 24 hours to 57,858, in line with a selloff in Asian technology stocks. Although the RSI at 26.8 is approaching oversold territory, the MACD remains negative and below its signal line, indicating momentum is still downward. The price is trading well below the SMA20 and SMA50, confirming a weak short-term trend. Oversold conditions could set the stage for a rebound, but with negative news flow, downward pressure is more likely to persist over the next 1-3 days. Nevertheless, the risk of short-term volatility and a bounce after such a sharp decline should not be ignored.

The KOSPI fell 12.9% in 24 hours, experiencing a sharp selloff, with its latest close significantly below both the SMA20 and SMA50. Although the RSI at 36.8 is approaching oversold territory, it has not yet signaled a bottom; MACD is negative and below the signal line, with momentum to the downside. The news headline confirms weakness in Asian technology stocks and supports the deterioration in risk appetite. Even if rebound buying emerges in the short term, trend pressure may persist; a downward bias is more likely over the next 1-3 days. Nevertheless, given oversold conditions, the possibility of a volatile and limited recovery should not be dismissed.

The HSI rose 5.6% in the last 24 hours to reach 24,700, with RSI at 80 indicating overbought territory. MACD remains in positive territory, but the price is significantly above SMA20 and SMA50, increasing the risk of short-term profit-taking. News of a sharp decline in Asian tech stocks could weaken regional risk appetite and create downward pressure on the HSI. Combined overbought conditions and negative regional news flow raise the probability of a pullback in the 1-3 day horizon. However, strong momentum may limit the downside, and confirmation is needed for direction to become clear.

The sharp decline in Asian technology stocks could negatively affect global risk appetite and create selling pressure on emerging markets. Although Turkish markets are not directly technology-weighted, the global risk aversion trend increases the risk of short-term volatility and foreign outflows in BIST. Downward pressure may be seen, particularly in exporter and cyclical sectors; volatility in TL assets may increase. Nevertheless, domestic dynamics and geopolitical developments may limit the impact.