Tech selloff deepens as Kospi slides 5% on AI spending

Global tech shares dropped on Oct. 30 after corporate spending on artificial intelligence sparked investor caution, sending South Korea's Kospi down more than 5% and Japan's Nikkei down over 2%.

The retreat highlighted heightened market sensitivity toward capital expenditure cycles at mega-cap technology firms, where multi-billion-dollar investments in data centers and semiconductor infrastructure have outpaced near-term revenue gains. US index futures slid during Asian hours, pointing to an opening drop on Wall Street.

Semiconductor suppliers absorb heaviest losses

Market data showed heavy volume in semiconductor and component manufacturers closely tied to the artificial intelligence supply chain across regional exchanges. Foreign institutional investors drove net outflows in Seoul, while technology-heavy Japanese exporters faced compounding pressure from shifts in currency positioning and export demand.

European equity benchmarks displayed narrower losses of less than 1% following the Asian session. Analysts attributed the relative stability in European bourses to their smaller weighting in advanced semiconductor manufacturing compared with East Asian and US stock indices.

Market participants are focusing on quarterly earnings reports scheduled for Oct. 31, when leading cloud hyperscalers are set to disclose revised capital expenditure guidance for the coming fiscal quarter.