Technology · India Bureau
Asian Markets Reel as US Selloff Triggers Trading Halt
Concerns over artificial intelligence drove sharp declines across major Asian stock exchanges on Monday, with one regional market experiencing such severe losses that trading was suspended for 20 minutes. While Indian equities managed modest gains, investor portfolios across the region turned sharply negative.
LSN India ·
Sharp selling pressure in US markets reverberated across Asia on Monday, with investor portfolios taking a beating despite mixed performance in individual markets. The selloff, driven by concerns surrounding artificial intelligence and broader economic uncertainty, prompted one regional stock exchange to implement a trading halt to prevent further panic selling.
The exchange halted trading for 20 minutes as share values plummeted, triggering automatic circuit breakers designed to provide a cooling-off period during periods of extreme volatility. The measure underscored the severity of market stress despite typical opening hours operations.
India's benchmark indices bucked the broader regional trend, closing with modest gains. However, most investors' portfolios remained in the red, reflecting heavy losses in their international holdings and exposure to multinational companies impacted by US market turmoil.
Analysts attributed the selloff to mounting concerns over valuations in the artificial intelligence sector following disappointing corporate guidance and economic data from the United States. The contagion effect highlighted the continued interconnectedness of global markets and the vulnerability of regional exchanges to external shocks.