Seoul leads Asian market slide as AI-fueled tech rout spreads globally

Asian markets mostly sank on Thursday, with tech stocks taking the heaviest hit as renewed worries over the artificial-intelligence boom rippled across the region. The Jakarta Post reported that Seoul again bore the brunt of the selling, while oil prices climbed further amid ongoing US-Iran strikes. The sell-off followed a second day of gains on Wall Street that had been fueled by data showing inflation easing, but regional investors failed to build on that momentum, according to Digital Journal.

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Digital JournalAsian stocks mostly sink as AI worries hammer techJakarta PostAsian stocks mostly sink as AI worries hammer tech

"Seoul again taking the brunt of the selling"

The downturn was not limited to Asia. Newsday noted that drops for computer chipmakers and other AI winners dragged down stock markets worldwide. In the United States, the S&P 500 fell 0.6%, while the Dow Jones Industrial Average was down 182 points, or 0.3%, with an hour remaining in trading, KFOR reported. Despite the broad index decline, more stocks within the S&P 500 actually rose than fell, a telling sign of the concentrated nature of the rout.

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NewsdaySlumping AI stocks drag down markets around the worldKFORSlumping AI stocks drag down markets around the world

"even though more stocks rose within the index than fell"

The Age and Brisbane Times both observed that computer chipmakers and other winners of the artificial-intelligence boom were slumping again, weighing on markets globally. The pattern underscores a growing unease among investors about whether the high valuations of AI-driven stocks are sustainable, particularly as the sector faces increasing regulatory scrutiny and competitive pressures. Meanwhile, rising oil prices added another layer of uncertainty, as geopolitical tensions between the US and Iran continued to escalate, further rattling markets already skittish about tech exposures.

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The AgeASX set to slide, AI stock slump hurts Wall StreetBrisbane TimesASX set to slide, AI stock slump hurts Wall Street