South Korea's KOSPI skidded 1.7%, heading for a 4.3% weekly decline, with memory chipmaker SK Hynix down 2.5%. (EPA Images pic)SYDNEY: Asian shares fell on Friday as concerns over the enormous funding needs of AI hammered tech and led to the biggest daily rally in Treasuries in more than three years, with investors fleeing to sovereign bonds and safe-haven currencies.
Markets also sharply pared back expectations of further policy tightening from the Federal Reserve, stripping out almost a full quarter-point rate hike for next year amid concerns a bursting AI bubble could derail the data-centre investment boom and hobble the US economy. A December rate rise is no longer fully priced, with the implied probability falling to 85%.
