Asian Stocks Fall as AI Spending Jitters Hammer Chipmakers
MSCI Asia Pacific dropped 1.2%, with South Korea’s KOSPI plunging 5.6% and Japan’s Nikkei down 1.3%. Nvidia debt-protection costs surged amid a $750 billion AI deal wave, while ASML sank on a Chinese chipmaking machine report.
Asian equities tumbled in a broad sell-off as concerns over the sustainability of AI spending rattled chipmakers. The MSCI Asia Pacific Index fell 1.2%, while South Korea’s KOSPI plunged 5.6% and Japan’s Nikkei 225 shed 1.3%.
Nvidia, a central name in the AI build-out, saw the cost of insuring its debt against default climb. The move coincided with a wave of AI-related deals totaling $750 billion, highlighting fears of overleveraged expansion.
Dutch semiconductor-equipment giant ASML also came under pressure, sinking after a report focused on Chinese chipmaking machinery, adding to the sector’s woes.
Source: First Squawk