Asian Markets Decline as AI Investment Concerns Intensify

Significant Losses Across Region

Asian stock markets experienced a broad decline on Monday, December 15, 2025, with investors reacting to growing concerns about the financial burden of artificial intelligence (AI) investments. The South Korean KOSPI index recorded a 2.8% drop, marking its deepest decline in nearly four weeks ¹

Regional Market Performance

The decline was widespread across Asia:

• Nikkei 225: down 0.39% to 50,141.7
• Hang Seng: down 1% to 25,718.14
• ASX 200: down 0.68% to 8,638.2
• FTSE Straits Times: down 0.36% to 4,570.08
• FTSE Malay KLCI: down 0.3% to 1,632.91 ²
  Source 2

  https://investasi.kontan.co.id/news/bursa-asia-kompak-melemah-di-pagi-ini-1512-indeks-taiex-anjlok-paling-dalam

Market Sentiment and Factors

The sell-off in Asian markets follows Wall Street's decline on Friday, December 12, 2025, as investors became cautious about the AI-driven market rally. Jed Ellerbroek, portfolio manager at Argent Capital Management, noted that investors are becoming more cautious and hesitant about AI-related investments ²

Currency Market Developments

The Asian currency market showed limited movement, with the Taiwanese dollar experiencing the most significant decline against the US dollar, weakening by 0.31% to 31.300 TWD/USD ³

Looking Ahead

Investors are now focusing on upcoming central bank meetings in the region, which may provide further guidance on monetary policy and potentially impact market sentiment. The current market environment reflects a delicate balance between growth concerns and technological investment enthusiasm.