1. Why did Asia stocks fall sharply today?

Asia stocks dropped after U.S. markets turned weak due to worries about high AI stock valuations and rising costs. Investors also reacted to mixed economic data from China and heavy selling in tech shares.

2. Why did South Korea’s KOSPI plunge 5%?

The KOSPI fell as major chipmakers like Samsung and SK Hynix saw strong selling pressure. These companies are closely linked to the AI sector, which faced fear-driven profit booking.

3. Are AI stocks causing market volatility in Asia?

Yes, concerns about whether AI stocks are overpriced have made investors nervous. Rising investment costs and uncertain earnings growth added to the sell off across Asian markets.

4. Will Asia stocks recover after this drop?

Many analysts believe markets may stabilize after key earnings reports and clearer central bank signals. However, short term swings may continue if global uncertainty stays high.

5. How is Wall Street influencing Asian stock markets right now?

Weak U.S. futures and tech sector losses are directly affecting investor mood in Asia. Since global markets are connected, fear in Wall Street often spreads to Asian exchanges.

IN Stocks

Asia stocks slide on AI jitters from Wall Street; KOSPI plunges 5%

ByRubaisha February 2, 2026February 2, 2026

Shares in Asia fell sharply on Monday as global markets turned cautious following sell-offs on Wall Street tied to artificial intelligence concerns and mixed economic signals from China and across the region.