Asian Shares Retreat As AI-related Stocks Slump After Recent Rallies

Asian equities retreated broadly as investors sold semiconductor and AI-related shares after a strong rally, with weakness spilling over from U.S. tech volatility. The Nasdaq article highlighted sharp declines in Japan and South Korea, while Hong Kong and China also fell on tech pressure and Evergrande-related concerns. The sell-off reflects growing worries that elevated chip prices could curb end-demand and slow AI capital spending. U.S. macro data were mixed-to-supportive for risk assets: PCE inflation matched expectations, dollar index eased, and Fed hike bets were pared back, though robust consumer spending, income, jobs data, and an upward GDP revision kept rate-hike expectations alive. Microsoft and Apple’s price increases underscore cost pressures in the tech supply chain, adding to the negative tone for AI beneficiaries. Overall, the piece points to a near-term de-rating of AI and chip names, with regional equity weakness and a softer but still watchful macro backdrop.