Asian markets slide as chip sell-off hits AI investment bets

Asian stock markets opened lower on Tuesday, pressured by heavy selling of semiconductor shares amid investor concerns over massive AI investment costs and rising borrowing expenses. South Korea's KOSPI fell 2.31%, leading regional declines. Chip stocks were hit hard, with SK Hynix dropping 4.07% and Samsung Electronics down 1.03%. Japan's SoftBank Group fell 4.46%, while Tokyo Electron and Renesas Electronics declined over 1%. Investors question whether huge AI spending will generate adequate returns. Markets await earnings from Meta Platforms and Tesla this week to assess AI profitability. China's loan prime rate announcement is also being watched for monetary policy direction.