Japan and South Korea equities fall as fears over artificial intelligence investment weigh on regional markets.
Asian technology shares led declines in Japan and South Korea, pulling the Nikkei and KOSPI lower amid growing concerns over AI-related spending. The sell-off reflected broader unease about overvaluation in AI-driven stocks, echoing warnings of dot-com era extremes from major banks.
Japan’s June trade surplus reached AU$1.929bn, defying expectations of a AU$1.1bn deficit. Meanwhile, the People’s Bank of China set the USD/CNY reference rate at 6.7895, weaker than the estimated 6.7462, signaling potential currency stabilization efforts.
Market sentiment was further pressured by CITIC Securities’ warning that South Korea’s equity deleveraging remains incomplete, adding to volatility risks. Fitch noted limited near-term credit impact from Korea’s equity turbulence but highlighted the need for sustained stability.