KOSPI and Nikkei 225 fall as AI stock selloff outweighs strong tech earnings

South Korean and Japanese stock indices fell sharply on Thursday as renewed selling in artificial intelligence-related shares overshadowed strong US tech earnings. The KOSPI dropped nearly 2% to 5,635, while the Nikkei 225 fell about 1.6% to below 64,000. The decline followed the Bank of Korea holding interest rates at 3% and Brent crude oil rising above $110 per barrel. Samsung Electronics lost over 3% and SK Hynix nearly 4%, as investors questioned whether strong chip demand justifies high AI investment costs. The MSCI Asia-Pacific index outside Japan fell 0.2%, with Hong Kong's Hang Seng down 2.1% and Shanghai's Composite losing 0.9%. Analysts noted concerns about AI credit risk and profitability, while Japan's fuel import dependence and a weak yen near 158 per dollar amplified energy cost pressures.