Asian equity markets staged a sharp reversal from record levels on Tuesday, driven by aggressive profit-taking in the technology sector.
The sell-off was particularly severe in South Korea, where the Kospi index tumbled 10%, while Japan’s Nikkei 225 fell more than 3%.
European markets also opened lower, reflecting the contagion effect from Wall Street’s recent tech-led decline.
The decline was led by major chipmakers and artificial intelligence-related stocks, which have faced mounting scrutiny over their valuations.
Investors are increasingly wary of the sustainability of the tech rally, prompting a broad-based exit from high-growth names.
The selling pressure extended beyond the technology sector, indicating a wider risk-off sentiment across Asian equities.