Asian stock markets fell sharply as the artificial intelligence driven rally lost momentum. South Korea's KOSPI index halted trading after a steep decline. Investors focused on possible Federal Reserve interest rate increases and fresh inflation figures.
The downturn spread across the region with technology and semiconductor stocks leading the losses. South Korea's benchmark index triggered a trading halt following the sharp drop. Market participants assessed the potential effects of higher US interest rates alongside upcoming inflation data releases. At the same time, rising tensions in the Middle East lifted oil prices. The US dollar gained ground against the Japanese yen as investors sought safer assets amid the volatility.
