AI stock rout deepens as Asian markets tumble, South Korea leads losses

Asian shares plunged on Friday, with Tokyo's Nikkei 225 losing 5 percent and South Korea's KOSPI index crashing 6.3 percent, as a sell-off in artificial intelligence and chip stocks spread from Wall Street to the region. The rout was led by heavy selling of computer chipmakers and other AI-related shares, dragging markets lower, according to WKMG News 6.

WKMG News 6Asian shares sink, with Tokyo down more than 5% as slumping AI stocks drag world markets lower

South Korea's benchmark bore the brunt of the decline, driven by a massive sell-off in chipmakers Samsung and SK Hynix, Asianet Newsable reported. The KOSPI's 6.3 percent drop was the steepest among Asian indices on the day.

Asianet NewsableMarkets Today: Asian Shares Decline, Kospi Leads Losses With 6.3% Fall

The downturn tracked negative cues from US equity markets, where technology stocks fell sharply on Thursday, FXStreet reported. The weakness in AI-linked shares extended losses as investors grew wary of the sector's recent rally.

FXStreetAsian stock markets mirror US tech sell-off, Nikkei plunges over 4%

Bond markets, however, found some relief on the back of cooler inflation data, according to Asianet Newsable, suggesting that the sell-off was concentrated in equities rather than a broader risk-off move. Still, the sharp declines in Tokyo and Seoul underscored the depth of the AI stock rout across Asia.