Malaysian stocks fall 1% as global AI selloff hits regional markets

Malaysia's Bursa Malaysia stock exchange fell about 1% on Friday, with the FBM KLCI dropping 15.91 points to 1,619.95, as a global selloff in artificial intelligence stocks hit regional markets. The rout followed Wall Street's worst performance in 18 months, triggered by fears that a Democrat-led US Congress would increase oversight of the tech sector. The Nasdaq fell 5.5%, losing a record US$2.5 trillion in market value, while Asian markets including South Korea's Kospi and Japan's Nikkei also plunged sharply. Malaysian technology stocks dropped 5.78%, with semiconductor firms like Inari Amertron, KESM, and UWC posting significant losses. Analysts at Apex Securities warned the global AI and chip selloff, which sent the Philadelphia Semiconductor Index down over 12%, could threaten further downside for the local sector.