Asian stock markets took hard hit Friday,led by tech shares nosediving . South Korea's Kospi index faced temporary trading halt after plunging 8%,closing down 5.8%. Third time this week circuit breaker kicked in to stop panic selling .
Drop came after Apple shares fell 6% Thursday,largest single-day slide in over year. The company hiked prices for iPads,MacBooks,citing soaring chip costs . Alarms ringing for investors now rethinking tech stock valuations after recent rally .
Big worry over massive investments by tech giants in AI infrastructure,expected to hit hundreds of billions this year. David Makaryan from Alpha Pacific Group said while AI's long-term case is strong,investors getting picky about which firms can justify high market values.
Japan's Nikkei 225 also took a hit,closing down over 4%,with tech heavyweight SoftBank shares dropping 12.5%. Other major indexes in Taiwan,mainland China followed suit.
Volatility in South Korea particularly sharp lately. Kospi's Friday halt fifth this year, showing investors' jitters. Analysts point to rising AI commercialization costs being passed to consumers,raising doubts about demand sustainability.
Raymond Woo from Kyoto University Innovation Capital warned that rising component prices might dampen device sales,slowing chip demand. Traders taking profits after strong tech stock run,adding to market complexity.
Asian markets wrestling with these issues,investors left to navigate tricky scene where future of tech valuations is uncertain…
