Investor skepticism over AI spending returns sparks a regional sell-off, with South Korea’s KOSPI plunging 9.45% amid chipmaker losses.
Asian equities tumbled Tuesday as doubts over artificial intelligence profitability triggered a sell-off in semiconductor shares. South Korea’s KOSPI led declines, dropping 9.45% to near 6,120, while SK Hynix and Samsung Electronics fell up to 13% and 10%, respectively. The MSCI Asia Pacific gauge slid over 3%, with Japan’s Nikkei 225 down 4.38% to a two-month low.
The downturn followed a tech-driven retreat on Wall Street, with investors rotating into bonds and away from risk assets. KOSPI 200 futures triggered a trading curb after steep losses, marking the 22nd such halt this year. Japan’s Topix and China’s SSE Composite also closed lower, though Hong Kong’s Hang Seng bucked the trend, rising 0.58% on strong IPO activity and AI-related inflows.
Oil prices fell as bond yields declined, reflecting a shift toward safer assets amid the tech sector’s weakness.