Business · India Bureau
Asian markets tumble as AI stock selloff spreads across region
Equity markets across Asia retreated Wednesday following renewed concerns over elevated artificial intelligence stock valuations. South Korea's benchmark index led regional losses, shedding over 5 per cent as major chipmakers tracked declines on Wall Street.
LSN India ·
Asian equities fell broadly Wednesday as investors reassessed valuations in the artificial intelligence sector, pulling markets further from recent peaks. South Korea's Kospi index led the regional decline, dropping 5.2 per cent to 6,515.97, with semiconductor firms bearing the brunt of selling pressure. Samsung Electronics shed 6.9 per cent while memory chipmaker SK Hynix tumbled 7.9 per cent, mirroring losses among their US-listed peers that have driven much of the AI rally.
Cross-regional indices reflected the cautious mood. Tokyo's Nikkei 225 sank 2.6 per cent to 65,703.78, while Hong Kong's Hang Seng lost 0.4 per cent to 25,382.66. Shanghai's Composite index shed 1.5 per cent to 3,927.70, Taiwan's Taiex fell 1.4 per cent, and Australia's S&P/ASX 200 slipped 0.4 per cent to 9,083.70.
Market sentiment was further dampened by rising crude oil prices and geopolitical uncertainty. Oil markets have experienced sharp swings amid ongoing negotiations between the United States and Iran over sanctions relief and the resumption of petroleum exports from the Persian Gulf region. Analysts suggested the combination of AI stock profit-taking and energy price volatility weighed on investor confidence heading into the week's close.