Asia tech stocks slide sharply as cracks emerge in the AI rally
Asia tech stocks slid sharply as confidence wavered in the AI rally. According to the Straits Times, the selloff was steepest in South Korea, with the Kospi falling as much as 7 percent intraday. Regional chip names came under heavy pressure.
Straits Times BusinessAccording to the Straits Times, Asia tech stocks faced a broad selloff on the week's final trading day. The hub of the selloff was South Korea, with the Kospi index falling as much as 7 percent intraday and Samsung Electronics and SK Hynix among the biggest decliners. In Taiwan, TSMC also dropped sharply during the session.
Investors say fatigue in the US chip rally has spilled over into regional markets. Some analysts note that current valuations leave little room for any more cautious scenario on AI demand. In Japan, Sony and Tokyo Electron also slipped, while in Hong Kong Tencent and Alibaba pared losses into the close.
On the macro side, a stronger-than-expected US non-farm payrolls print, which makes any earlier Fed rate cut harder, also weighed on sentiment. In coming days, TSMC and Samsung production indicators will be key references for gauging the true health of AI demand.
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