Asian Markets Slide as Investors Flee AI-Linked Equities

The sentiment hit major regional players, with Samsung Electronics and Kioxia Holdings sliding as the selloff spread to companies with established earnings. SK Hynix briefly faced a 4.25% drop before recovering to a 3.2% gain, though the company confirmed it has abandoned plans for a U.S. listing of its Solidigm unit due to heightened market volatility. Chris Weston, head of research at Pepperstone, noted that investors are shedding exposure across the entire AI ecosystem rather than targeting only highly leveraged firms.

Capital is migrating toward traditional safe-haven assets. The 10-year U.S. Treasury yield retreated to 4.969%, while the yen climbed to a one-year high against the euro. Conversely, energy markets remain jittery; WTI crude futures rose 0.85% to $200.32 a barrel following Houthi attacks on Saudi energy infrastructure. Analysts warn that further strikes on production facilities could severely tighten physical supply, keeping volatility high even as inflation concerns continue to exert downward pressure on gold prices.