Asian equity markets opened lower on Wednesday, weighed down by a broad-based retreat in technology shares as investor confidence in artificial intelligence stocks continues to erode.
The sell-off marks a continuation of the pressure seen in global markets, with traders reducing risk exposure ahead of two pivotal events: the release of earnings from major US technology firms and the Federal Reserve's upcoming interest rate decision.
The cautious stance reflects growing uncertainty about the sustainability of the AI investment cycle and the trajectory of monetary policy.
With Big Tech results set to provide a critical update on capital expenditure and revenue growth, any signs of slowing momentum could trigger further repricing in rate-sensitive sectors.
Simultaneously, the Fed's decision will offer fresh guidance on the path of interest rates, influencing borrowing costs and equity valuations across the region.
This development follows a period of heightened volatility in global equities, where technology stocks have borne the brunt of selling pressure.