"Shares in Europe and Asia tumbled on Tuesday, with benchmarks in Tokyo and Seoul sinking more than 3%, after Nvidia and other artificial-intelligence -related shares pulled U.S. stocks lower. The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.3%. Computer chip giant Nvidia, at the center of the craze over AI, is due to report its earnings on Wednesday."
"Asian markets felt a chill after the yield on 30-year Japanese government bonds surged to 3.31%, reflecting rising risks as Prime Minister Sanae Takaichi prepares to boost government spending and push back the timetable for bringing down Japan's huge national debt. The yen was trading above 155 to the U.S. dollar, near its highest level since February. On Monday, the Japanese currency fell to its lowest level against the euro since 1999, when the unified European currency was launched."
"Tokyo's Nikkei 225 dropped 3.2% to 48,702.98, with selling of tech shares leading the decline. Chip maker Tokyo Electron shed 5.5%, while equipment maker Advantest dropped 3.7%. In Seoul, the Kospi fell 3.3% to 3,953.62. Samsung Electronics dropped 2.8%, while chip maker SK Hynix shed 5.9%. In Taiwan, the Taiex fell 2.5% as TSMC, the world's largest contract chip manufacturer, declined 2.8%."
Shares across Europe and Asia fell sharply as AI-related technology stocks and Nvidia weighed on markets, with Tokyo and Seoul falling more than 3% and S&P and Dow futures down 0.3%. Concerns about overheated valuations in chip and AI companies drove heavy selling in export-reliant markets such as South Korea and Taiwan. Rising 30-year Japanese government bond yields to 3.31% reflected fiscal risk as Prime Minister Sanae Takaichi plans higher spending and delayed debt reduction, while the yen weakened above 155 to the dollar. Major indexes including Germany's DAX, France's CAC 40 and Britain's FTSE 100 registered notable declines.
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