Asia markets retreat on AI worries; KOSPI slides nearly 4%

Asian stock markets declined on Thursday, pulling back from record highs reached earlier in the week, as heightened volatility in global technology shares and concerns over AI-driven disruption dampened investor sentiment.

The retreat followed a sharp overnight selloff in U.S. technology stocks, with the Nasdaq underperforming broader market indexes. Meanwhile, U.S. stock index futures were largely flat during early Asian trading hours on Thursday.

AI fears drag tech stocks lower

The decline follows a volatile week for technology and semiconductor stocks, as rising concerns that rapid advances in artificial intelligence could disrupt established business models and squeeze profit margins prompted investors to take profits after a strong rally.

South Korea’s benchmark KOSPI fell 3.7% after hitting record highs over the previous two sessions. Shares of Samsung Electronics and SK Hynix dropped more than 5% each as investors moved to lock in recent gains.

In China, the blue-chip CSI 300 index and the Shanghai Composite both slipped nearly 1%. Hong Kong’s Hang Seng Index declined 1.2%, while the Hang Seng TECH Index fell 1.5%.

Japanese stocks slip, earnings help stem losses

Japanese equities edged lower on Thursday, with the Nikkei 225 slipping 1% from record highs reached earlier in the week as technology stocks followed overnight losses on Wall Street.

The decline was cushioned by strong gains in select stocks. Panasonic shares surged after the company reported solid earnings and issued upbeat guidance, while Renesas Electronics jumped following the announcement that it will sell its timing business to U.S.-based SiTime in a deal valued at around $3 billion.

The broader TOPIX index was largely unchanged, highlighting relative resilience outside the technology sector.

Elsewhere in the region, Singapore’s Straits Times Index eased 0.4% after closing at a record high in the previous session. Australia’s S&P/ASX 200 also slipped 0.4%, tracking regional weakness as investors digested trade data released earlier in the day.

Australia’s trade surplus widened less than expected in December, reflecting modest export growth and softer imports, which reinforced concerns over uneven global demand.

Futures linked to India’s Nifty 50 were slightly lower, down 0.3%.

Sources: Ayushman Ojha