The downturn comes after a turbulent week for technology and semiconductor stocks, driven by growing concerns that rapid advances in artificial intelligence could disrupt existing business models and compress margins

Asian stock markets dropped on Thursday, pulling back from record highs hit earlier in the week, as sharp volatility in global technology shares amid AI disruption worries weighed on investor sentiment.

The downturn comes after a turbulent week for technology and semiconductor stocks, driven by growing concerns that rapid advances in artificial intelligence could disrupt existing business models and compress margins, prompting investors to take profits after a strong rally.

KOSPI declined 3.7% after soaring to record highs over the previous two sessions. Shares of Samsung Electronics and SK Hynix dropped more than 5% each as investors locked in profits following the recent rally.

China’s blue chip Shanghai Shenzhen CSI 300 index and the Shanghai Composite index declined around 1% each.

Hang Seng slid 1.2%, with the Hang Seng TECH sub-index shedding 1.5%.

In Japan, the Nikkei 225 dropped 1%, easing from record highs hit earlier this week.

Nikkei’s losses were capped by strong gains in select names, with Panasonic surging after reporting robust earnings and upbeat guidance, while Renesas Electronics climbed after announcing the sale of its timing business to SiTime in a deal valued at about $3 billion.

The broader TOPIX index traded largely flat, reflecting relative resilience outside the technology sector.

Straits Times Index edged 0.4% lower after closing at a record high in the previous session.

S&P/ASX 200 index also declined 0.4% as investors digested trade data released earlier in the day.

Australia’s trade surplus widened less than expected in December, reflecting subdued export growth alongside softer imports, reinforcing concerns that global demand remains uneven.

Futures tied to Nifty 50 inched down 0.3%.