Global Market Today: Asian stocks join US selloff as AI slump deepens

Asian stocks fell sharply in early trading as a selloff linked to deepening weakness in artificial intelligence-related markets extended beyond the United States. South Korea recorded the steepest decline among the major markets cited, with technology shares bearing the brunt of the move.

South Korea leads regional losses

South Korea’s tech-heavy Kospi Index dropped 8.8% in early trading. The decline triggered a circuit breaker, underscoring the intensity of the market move.

Semiconductor companies were among the hardest hit. Samsung Electronics Co. and SK Hynix Inc. each fell more than 9%, adding to pressure on the country’s technology-focused benchmark.

Japan and regional equities also fall

Japan’s benchmark Nikkei 225 Stock Average lost 6.2%. The broader MSCI Asia Pacific Index declined 2.9%, showing that the selling extended across the region rather than remaining confined to South Korea.

Market impact

The declines represent a sharp deterioration across major Asian equity markets during early trading. Technology and chip stocks were at the center of the retreat, while the regional index performance reflected a wider selloff following weakness in US markets.

The available market data captures the immediate impact of the downturn. It does not provide further details on how long the losses may continue or what additional effects they could have on individual companies and markets.