Asian shares sink, with Tokyo down nearly 5% as slumping AI stocks drag world markets lower

Asian markets sold off sharply with Tokyo's Nikkei down 4% to 64,141 and Taiwan's TSMC dropping 7.3%, as a broad AI chipmaker selloff continued across global equities. Wall Street futures declined with Nasdaq futures tumbling 1.6%, led by losses in Nvidia, Broadcom, Qualcomm, and Intel, as investors take profits amid concerns that AI demand may not sustain current valuations.

Why it matters: The selloff was exacerbated by China's Moonshot AI startup releasing its open-source Kimi K3 model, while SoftBank shed 9%, Netflix slumped 11%, and oil prices jumped on renewed Middle East tensions.