Persistent doubts surrounding the artificial intelligence investment cycle are weighing heavily on equity markets in Japan and South Korea.
Semiconductor manufacturers and their supply-chain partners faced renewed selling pressure, extending recent losses as investors reassess the durability of the AI-driven growth narrative.
The weakness in these high-valuation tech names created a stark contrast with other sectors, highlighting a growing bifurcation in regional market performance.
The divergence underscores a shift in sentiment among Asian investors, who are increasingly cautious about the valuation multiples supported by AI optimism.
While US technology stocks have shown signs of stabilization, the spillover effect in Asia has been muted, with local benchmarks failing to fully capitalize on any transatlantic rebound.
The pressure is particularly acute in Japan and South Korea, where exposure to chipmakers and related hardware suppliers is concentrated.