South Korea’s Kospi index is under renewed pressure, extending a sharp two-day decline that has erased significant gains from its recent artificial intelligence-driven rally.
The benchmark fell nearly 6% on Friday, marking the second consecutive session of heavy selling as investors aggressively locked in profits after a prolonged period of strength in tech-heavy equities.
The selloff reflects a broader rotation out of high-multiple growth stocks that have benefited from the AI investment cycle.
With valuations stretched following months of outperformance, even minor shifts in sentiment have triggered aggressive profit-taking among regional investors.
The decline underscores the fragility of the rally when momentum stalls, particularly in markets heavily exposed to semiconductor and technology supply chains.
In contrast, US markets are showing a more nuanced reaction.