Asia-Pacific markets declined on Wednesday, following a decline on Wall Street, which was driven by concerns about the valuations of artificial intelligence (AI) stocks. Shares of Palantir, a major player in the AI ​​sector, fell about 8%, despite the company reporting better-than-expected quarterly results. This decline reflects investor caution regarding AI stocks, which are considered overvalued, despite their strong growth.

Major stock indices in Asia showed declines, with Australia's S&P/ASX 200 down 0.19%, and Japan's Nikkei 225 down 0.25%. Meanwhile, South Korea's Kospi fell 1.9%, and the Kosdaq fell 0.95%. In Hong Kong, the Hang Seng Index is expected to open lower, reflecting the negative sentiment driving global markets. Concerns about high valuations in the AI ​​sector have dampened overall market sentiment.

Comments from the CEOs of Goldman Sachs and Morgan Stanley, who warned of a possible market correction in the next two years, further added to the uncertainty. "The sell-off finally occurred after comments from the CEOs of Goldman Sachs, Morgan Stanley, and Capital Group that the market was headed for a correction," said Andrew Jackson, head of Japan equity strategy at Ortus Advisors.

This decline also mirrored the broader trend in global stock markets, with the S&P 500 index down 1.17% and the Nasdaq Composite down 2.04%. AI stock valuations have pushed the S&P 500's forward P/E ratio above 23, near its highest level since 2000, adding to concerns of a market correction after the massive surge in AI stocks. (Asd)

Source: Newsmaker.id