Asian equity markets retreated on Tuesday, driven by a sharp sell-off in technology shares as investors grew increasingly wary of the massive capital requirements associated with the artificial intelligence boom.
The decline in tech-heavy indices reflected a broader unease regarding the sustainability of current funding levels for AI infrastructure projects.
The rout extended the downward momentum seen in global markets, following a weak session on Wall Street where technology stocks struggled to find support.
Selling pressure spread from South Korean exchanges to emerging-market assets, indicating that the anxiety over AI valuation and funding is no longer confined to US-listed names.
The broad-based nature of the decline suggests a repricing of risk across the sector.
Meanwhile, a slide in oil prices failed to provide a counterbalance to the equity weakness.