Asian markets experienced significant volatility as a heavy sell-off in chip shares spread across the region. This plunge followed a semiconductor selloff on Wall Street, leading emerging equities to slide to a three-week low. Investors continued to rotate out of technology stocks amid growing concerns that the artificial intelligence-fueled rally has run ahead of itself.
South Korean stocks were particularly affected, dipping nearly 8 percent on Thursday and seeing a near 10 percent drop over two sessions. The slump was driven by a sharp sell-off in semiconductor shares and renewed concerns over excess capacity, specifically after Meta Platform Inc.’s plan to sell computing power raised questions over AI capacity. These events heightened scrutiny over the sustainability of the global AI boom.
Some Asian markets pushed higher on Friday after the Dow Jones Industrial Average closed at another record high. While several AI and related chip stocks staged a rebound, other shares extended their recent slide. This mixed performance highlights the skittish sentiment of investors tracking declines in the U.S. and the ongoing volatility in the technology sector.