Asian equity markets faced sharp selling pressure on Tuesday, with the decline concentrated in the semiconductor sector.

The sell-off reignited investor concerns regarding the sustainability of the artificial intelligence-driven rally that has propelled regional indices to record levels in recent months.

South Korea's Kospi index led the regional decline, dropping more than 6% as major chipmakers dragged the benchmark lower.

South Korea's Kospi index led the regional decline, dropping more than 6% as major chipmakers dragged the benchmark lower.

Japan's Nikkei 225 also extended losses, reflecting the breadth of the tech sector rotation.

The MSCI Asia Pacific Index slipped 1.7%, underscoring the widespread nature of the profit-taking across the region.

The move marks a continuation of the sharp reversal from record highs observed earlier in the week.