Asian markets extended their losses as Japan’s Nikkei 225 dropped sharply, reflecting a broader sell-off driven by continued weakness in the AI sector. The Nikkei fell 1.8%, erasing earlier gains, while Hong Kong’s Hang Seng Index also slid 1.2% amid technology stock declines. The downturn was amplified by concerns over interest rate hikes and slowing economic momentum across the region.
The retreat in AI-related shares has deepened, with market heavyweights struggling to regain traction after recent rallies. Investors are grappling with the sustainability of the AI boom, leading to cautious sentiment. Meanwhile, global growth fears and mixed corporate earnings added to the bearish outlook. With Japan leading the regional losses, investors remain focused on upcoming data releases and central bank policy cues for signs of recovery.
