Tech stocks plunge as AI spending concerns and China chip rivalry hit Asian markets

Asian equity markets saw a sharp decline in technology stocks on Tuesday. Investors expressed worry over rising AI spending commitments. China's aggressive chip development added competitive pressure. South Korea temporarily paused trading amid the turbulence. Its benchmark stock index led regional losses. The index closed more than 10 percent lower for the day. The downturn reflects broader uncertainty in the tech sector. Analysts caution that continued AI and chip rivalry could deepen market strain. Market participants will watch for policy responses and corporate earnings.