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Asian equity markets are getting hammered this week. Tech-heavy indices across emerging Asian economies are nosediving toward their steepest weekly decline since April.
What's driving the selloff? Jitters around bloated valuations in the AI space. Investors are pulling back from tech stocks as concerns mount that the artificial intelligence sector has been running too hot. The correction is hitting particularly hard in markets with heavy tech exposure.
This isn't just a minor dip—we're talking about the most severe weekly drop in months. Market participants are reassessing risk as the reality of stretched multiples collides with profit-taking pressure.