Technology stocks plunge, dragging the South Korean market down by 4%.

• Technology stocks lead decline in Asian markets.
• AI companies put pressure on the South Korean market.
• Wall Street influences global stock market losses.

Asian stock markets closed Friday under heavy pressure, particularly in South Korea, where investors reacted to the sell-off seen in US technology stocks. The correction mainly affected companies linked to the semiconductor and artificial intelligence sectors, segments that had been sustaining much of the market gains in recent months.

The Kospi index, the main indicator of the South Korean market, fell 4,11%, registering one of the weakest performances in the region. Among the biggest declines were Samsung Electronics and SK Hynix, which lost about 6% and 8%, respectively. The Kosdaq index, focused on smaller and growth companies, also closed lower, with a decline of 2,41%.

In addition to pressure from abroad, the South Korean technology sector has faced internal discussions about the distribution of profits generated by advances in artificial intelligence. The country's Minister of Labor argued that large chip manufacturers should share a larger portion of the profits with workers and suppliers, arguing that record results could widen income inequality.

Negative sentiment spread to other Asian markets. In Japan, the Nikkei 225 index fell 1,1%. In Australia, the S&P/ASX 200 lost 0,2%. In Hong Kong, the Hang Seng fell 0,46%, while the CSI 300 in mainland China retreated 0,29%.

The movement originated on Wall Street, where investors reduced positions in companies associated with artificial intelligence and the semiconductor sector. Although the Dow Jones index renewed its all-time high by advancing 1,73%, the Nasdaq performed weaker and closed the trading session down 0,09%.

Much of the pressure came after Broadcom released its quarterly results. The chipmaker reported revenue below market expectations, triggering a sell-off in the sector's stock. Its shares fell by more than 12%, negatively impacting other companies in the industry.

The effect was felt across several technology companies. Arm Holdings lost more than 4%, while Micron Technology fell almost 8%. The VanEck Semiconductor ETF (SMH), a benchmark for the semiconductor sector, also closed lower.

Markets continued to monitor uncertainties surrounding the Middle East. Conflicting signals regarding negotiations to end the conflict in the region contributed to increased investor caution, driving up oil and fuel prices and adding further volatility to global markets.