Asia markets tank, tracking Wall Street declines, as AI valuation concerns hit sentiment (www.cnbc.com)

Asia-Pacific markets tumbled Wednesday as investor jitters over richly valued AI names rippled through equities, with the Nikkei plunging below the 50,000 mark (–3.48%) and the Kospi off nearly 6% (–5.97%). Major tech and AI-linked stocks led losses: SoftBank slid about 12%, Samsung Electronics and SK Hynix fell more than 7% and 8% respectively, and Palantir dropped roughly 8% even after beating third‑quarter estimates and raising guidance. Other regional moves included Topix –2.27%, Kosdaq –5.39%, Hang Seng –1.36%, CSI 300 –0.9% and Australia’s S&P/ASX 200 –0.77%. U.S. indexes weakened overnight as well: S&P 500 –1.17% to 6,771.55, Nasdaq –2.04% to 23,348.64 and the Dow –0.53% to 47,085.24. The rout was driven less by company fundamentals than by growing concern that AI-fueled gains have pushed market valuations to stretched levels. Executives at Goldman Sachs and Morgan Stanley warned investors to brace for a market drawdown over the next two years, and strategists say those comments helped trigger a broader pullback. Technical risk indicators: the S&P 500’s forward price‑to‑earnings ratio has climbed above 23 — near its highest since 2000 per FactSet — underscoring that concentrated strength in AI and chip leaders could amplify volatility if expectations cool.