Asian stocks mostly sink as AI worries hammer tech

Most Asian stocks fell sharply on Thursday as renewed AI valuation concerns triggered heavy selling in tech, with Seoul's KOSPI diving over 6% and SK hynix shedding more than 11%. Analysts warned the AI trade had become too crowded—the Philadelphia Semiconductor Index had risen roughly 83% year-to-date—meaning even strong earnings like TSMC's record Q2 profit and ASML's raised forecast couldn't prevent a correction.

Why it matters: Hong Kong was the regional outlier, climbing over 1% on Chinese chip stocks, while Tokyo, Shanghai, Singapore, and Wellington also dropped; European markets in London, Frankfurt, and Paris fell as well despite Wall Street's previous day gains.