AI Valuation Fears Batter Asian Stocks, Prompt Taiwan Regulator to Reassure Markets

Enthusiasm over artificial intelligence has driven up global technology stock valuations in recent years, but investors are beginning to question whether corporate earnings can justify elevated share prices, prompting a rapid withdrawal of funds. The synchronized declines in Japanese, South Korean and Taiwanese equities show that an AI valuation correction has become a significant risk to Asian markets and investor confidence.

The latest selloff triggered a circuit breaker in South Korea, while Taiwan’s benchmark index swung by more than 1,000 points intraday. Related reports did not provide the exact trading date or percentage declines. Taiwan’s Financial Supervisory Commission said the market’s fundamentals remained unchanged and the overall collateral maintenance ratio for margin trading was still high. It said it would continue monitoring international developments and respond when appropriate.