Why are Asian stock markets, particularly Seoul, experiencing losses?

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Asian Stock Markets Face Losses Amid Tech Selloff and Geopolitical Tensions

Seoul led declines across most Asian stock markets, with technology firms experiencing a significant selloff. This downturn is primarily attributed to concerns over stretched valuations within the artificial intelligence (AI) sector and renewed geopolitical tensions in the Middle East, which have also driven up oil prices.
Tech Sector Under Renewed Selling Pressure

Technology stocks have been particularly hard-hit, facing renewed selling pressure after several weeks of volatility. Investors are scrutinizing the substantial investments being made in the AI sector, leading to questions about current valuations. This uncertainty has contributed to a broad decline in tech shares across various Asian exchanges.
Seoul Market Heavily Impacted by SK hynix Plunge

The Kospi index in Seoul experienced a significant drop, largely due to the substantial 10 per cent fall in market heavyweight SK hynix. This decline has seen the chip manufacturer lose approximately one-third of its value since reaching a record high in the previous month. SK hynix's performance significantly impacted the broader South Korean market.
Other Asian Markets Show Mixed Performance

While Seoul experienced substantial losses, other Asian markets presented a mixed picture. Shanghai, Singapore, Wellington, and Jakarta also saw declines. However, markets in Hong Kong, Taipei, and Manila managed to post gains, indicating varied investor sentiment across the region. Tech firms in Tokyo, such as Advantest and Tokyo Electron, also saw slight decreases of over one per cent.

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Why are Asian stock markets, particularly Seoul, experiencing losses?

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