Business · World News Bureau
Tokyo, Seoul markets slide as technology sector faces broad retreat
Equity markets in Japan and South Korea declined sharply as investor sentiment shifted away from artificial intelligence-related stocks, extending a broader correction across Asia's tech-heavy exchanges. The selloff has raised concerns about valuations in the high-growth sector.
LSN World News ·
Stock indices in Tokyo and Seoul retreated significantly on Tuesday as technology stocks faced sustained pressure, with AI-focused equities bearing the brunt of the decline. The Nikkei 225 and KOSPI both registered notable losses, reflecting a rotation out of positions that had benefited from the artificial intelligence investment boom over the past year.
Analysts attributed the pullback to a reassessment of valuations in the semiconductor and AI-related hardware sectors, which have commanded premium prices amid expectations for transformative technological advances. Investors appeared to be taking profits after substantial gains, while concerns about near-term earnings growth weighed on sentiment.
The weakness extended beyond large-cap technology names, with broad-based selling pressuring the overall market indices. Trading volumes remained elevated as institutional investors adjusted their exposure to the sector. Market participants noted that recent corporate earnings reports and guidance from technology firms had prompted some recalibration of growth expectations.
Regional exchanges have remained volatile as global investors grapple with questions about the pace and profitability of artificial intelligence adoption. The correction underscores ongoing uncertainty about sustainable valuations in the technology space, despite medium to long-term optimism about AI's transformative potential across industries.