Asian Stocks Mostly Lower on AI Investment Overheat Fears and Stalled Mideast Peace

(Central News Agency, Hong Kong, June 5, combined foreign reports) Disappointing earnings guidance from US chip giant Broadcom kept investors wary of the artificial intelligence (AI) theme, while cautious观望 over the bumpy Middle East peace process led most Asian stock markets to close lower on Thursday.

According to AFP, Broadcom's third-quarter revenue forecast, released on Wednesday, fell short of expectations, triggering concerns among investors who had recently piled into all AI-related stocks that the industry's massive AI investments may be excessive and valuations too high. This prompted profit-taking, causing the US Nasdaq index to close lower on Wednesday.

This selling pressure extended to Asian markets, with the tech-heavy Tokyo and Seoul markets continuing their pullback from recent record highs.

Tokyo's Nikkei index fell 1.3%, matching the previous day's decline. Seoul's KOSPI index widened its loss from Wednesday's 1.8% drop to a 5.5% plunge, at one point tumbling nearly 7% during the session.

Meanwhile, investors were unsettled by the ongoing difficulties in efforts to end the Middle East crisis. A conditional ceasefire between Lebanon and Israel was rejected on Wednesday by the leader of the Lebanese armed group Hezbollah.

Iran also reportedly said that its talks with the US had made "no substantial progress." However, US President Donald Trump again expressed optimism, suggesting a deal could be reached over the weekend.

Hong Kong's Hang Seng Index closed 1.2% lower, and the Shanghai Composite Index fell 0.7%. Other markets that ended in the red included Sydney, Singapore, Taipei, Bangkok, and Jakarta. Markets in Wellington and Manila bucked the trend to close higher.