Sharp sell-offs seen in Asian markets as risk perception grows in artificial intelligence investments
As risks in capital flows toward the artificial intelligence sector grow, the sell-off wave in Asian stock markets deepened, IPOs were canceled, and BlackRock lowered its outlook on US equities.
While the capital flow driven by artificial intelligence investments has spread widely, cracks observed in the sector since June have become more pronounced. Sharp sell-offs in Asian markets, canceled IPOs, and a cautious approach in the credit market are drawing attention on a global scale.
Growing Risks in the Artificial Intelligence Sector
While about four years have passed since OpenAI launched ChatGPT, the capital flow generated by artificial intelligence investments has spread over a wide area. However, the cracks that began to appear in June are growing increasingly larger.
Sharp Sell-Off Wave in Asian Stock Markets
Sell-offs in chipmakers in Asian markets extended into a fifth day, with South Korea's KOSPI index dropping by more than 6 percent. Kioxia shares in Tokyo recorded a 13 percent decline.
Volatility in Credit and Bond Markets
Wilson Asset Management Portfolio Strategist Damien Boey stated that in addition to rising bond yields, volatility in the bond market is also impacting asset prices.
Notable Warnings from BlackRock and the IMF
BlackRock, the world's largest asset manager, downgraded its outlook on US equities to neutral. Meanwhile, the International Monetary Fund reported that the effects of a potential correction could be global.
Canceled IPOs and the Phase of Investments
Nvidia-backed data center operator Firmus canceled its planned $5 billion IPO in Australia due to weakening demand. Experts state that the process has entered a phase focused on return on capital.