Declines in AI and semiconductor-linked stocks dragged South Korea's KOSPI down more than 6% on Tuesday, pulling the broader Asian equity complex to its weakest reading in over two months, as intensifying competition within the AI sector eroded the willingness of market participants to maintain exposure.

Losses tied to artificial intelligence and energy infrastructure stocks spread through Indian markets during intraday trading, with Hitachi Energy India, E2E Networks, Black Box, Orient Technologies, and Anant Raj each posting declines of as much as 5.5%. Trading in Hitachi Energy India stock touched a low point of 5.46% below the opening level before the day's session concluded. Trading at Rs 29,925 per share on the NSE as of 1:54 pm, the stock had shed 4.36% against its prior session's closing level.

Shares of E2E Networks changed hands at Rs 706.20, reflecting a 4% retreat, while Black Box shed 1.51% to settle at Rs 910.60 per share. Shares in Orient Technologies changed hands at Rs 227.48 on the NSE, reflecting a 0.98% dip from the prior session's close, while Anant Raj posted a steeper pullback of 1.76%, with its stock sitting at Rs 559.50.

Pressure on the Nifty Energy index carried through to the wider sector, pulling the gauge to 35,705.80 — a retreat of 0.42 percent on the session.

Pressure on Indian technology stocks tied to artificial intelligence and energy spread through broader Asian markets, where portfolio managers weighed the durability of AI-driven growth against a backdrop of mounting rivalry among chipmakers and platform providers. Declines in South Korean chipmaker stocks stretched into a fifth straight trading day on Tuesday, with the pace of those losses picking up.

South Korea's benchmark equity index shed more than six percent of its value in a single trading session, a drop not seen on a daily basis since the previous July. Trading on the KOSPI has now extended a run of consecutive daily losses not seen in over two years, with the index sitting roughly 25% below the peak it reached back in July. Weakness in the market that month traced back to a wave of forced exits from leveraged positions, with that pressure continuing to weigh on prices.

Losses of 2.6% on the Nikkei and 2% on Taiwan's exchange left both Asian markets lower on the day. Valuations on Shanghai's STAR Market, the exchange oriented toward technology listings, have retreated by over one-third from the highs recorded in July. A tracker covering the widest swath of Asia-Pacific equities outside Japan shed over 2% on the day, pulling the MSCI index down to a point not visited since late July.

Nasdaq futures pointed 0.77% lower, with their European counterparts edging down by around 0.2%. Losses among individual equities were led by SK Hynix, whose shares retreated 10%, while Samsung shares gave back 8%. Shares in Taiwan Semiconductor Manufacturing Company eased 1.8%, while Kioxia Holdings of Japan saw its stock tumble by as much as 14%. Shares in SoftBank, a company with holdings across the artificial intelligence sector, retreated by 8 percent.

Shares in US chipmakers fell after reports emerged that ChangXin Memory Technologies (CXMT), a Chinese memory producer, had made notable advances in its development pipeline — prompting investor uncertainty over whether the technology distance between the two industries was narrowing.