The sentiment shift follows Google’s third-quarter report, where search revenue growth faltered under the weight of expensive AI integration. Antonio Di Giacomo of XS.com noted that markets are increasingly intolerant of rising investment costs that fail to translate into immediate cash generation, a reality that has left even dominant tech firms vulnerable to sharp corrections.

South Korea’s Kospi bore the brunt of the volatility, plunging 5.2% as chip giants Samsung Electronics and SK Hynix fell 5.5% and 9.0%, respectively. The Korea Exchange briefly halted trading to contain the panic. Elsewhere, Japan’s Nikkei shed 2.75% and Taiwan’s Taiex dropped 3.0%, while Softbank Group saw its shares retreat 7.1%. Hong Kong remained a rare exception, with the Hang Seng edging up 0.7%.

As equity investors retreated, commodity markets showed divergence. Oil prices climbed on supply-side anxieties, with ANZ Research lifting its year-end Brent forecast to $105 a barrel. Meanwhile, gold dipped to $4,004.89 an ounce as rising bond yields—driven by expectations of tighter global monetary policy—reduced the appeal of non-yielding assets.