Asian stocks tumble, bitcoin retreats as China enters bear market
Asian stock markets experienced a significant downturn as Chinese indices entered a bear market, while Bitcoin and gold prices retreated. The selloff was exacerbated by mixed U.S. corporate earnings and uncertainty surrounding artificial intelligence investments.
Why it matters
The synchronized decline in global equities and crypto assets highlights growing investor anxiety regarding economic stability and the sustainability of the AI-driven market rally.
The CSI 300, which tracks the 300 largest stocks traded in Shenzhen and Shanghai, slid 2%, taking the decline from June’s peak to 20%. Other regional benchmarks followed suit. Japan’s Nikkei 225 fell around 3%, South Korea’s Kospi dropped 3.5%, Taiwan’s benchmark lost 2% and Hong Kong’s Hang Seng declined 3%.
Chinese technology shares traded in Hong Kong faced their worst session since President Donald Trump’s April 2025 “Liberation Day” tariff announcement, according to Bloomberg’s David Ingles .
According to Ingles, the technology benchmark has fallen more than 40% from its peak, almost erasing gains following Beijing’s Sept. 24 stimulus package, with forward valuations compressed to roughly 13 times earnings.
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