Asian equity markets extended their decline on Friday, with Taiwan emerging as the epicenter of a broad-based selloff in the technology sector.
The downturn marks a second consecutive day of losses, driven by disappointment that record artificial intelligence-driven earnings did not satisfy the high bar set by investor expectations.
The selling pressure was particularly acute in Taiwan, where chip stocks bore the brunt of the rout.
Despite strong fundamental results, the market's reaction suggests that valuations had already priced in near-perfect execution, leaving little room for error.
South Korean equities also faced volatility, reflecting the interconnected nature of the regional tech supply chain.
This latest retreat follows a pattern of caution among traders over the past week.