Key facts
- Asian stocks plunged on Thursday.
- Higher-than-expected US inflation data for September sparked the sell-off.
- Concerns over artificial intelligence investment also contributed to the decline.
Asian shares plunged on Thursday morning following a sell-off in the U.S. market sparked by a higher-than-expected consumer price index and worries about artificial intelligence investment. The KOSPI fell more than 7%, and the Nikkei fell 4% as pressure mounted on tech stocks. Analysts suggest this selloff reflects a repricing of the cost of capital due to rising interest rates rather than a fundamental deterioration in technology.