Asian Markets Slip Amid DeepSeek AI Concerns
From Financial Modeling Prep: 2025-01-28 05:37:56
Asian stocks traded flat-to-lower on Tuesday, with Japan’s Nikkei 225 down nearly 1% due to losses in semiconductor-related stocks. Hong Kong markets firmed slightly, with thin trading volumes during Lunar New Year holidays in China and South Korea.
DeepSeek’s cost-effective AI model, R1, impacted Japanese chipmakers. Advantest Corp. fell 10%, Tokyo Electron dropped 4%, Renesas Electronics lost over 2%, and SoftBank Group slid 4.7%.
DeepSeek’s R1 model challenging existing AI investments rattled the semiconductor industry, coinciding with Nvidia’s $600 billion market cap loss. U.S. markets influenced Asian markets, with upcoming tech earnings and Federal Reserve meeting as key events to watch.
The tech sell-off highlights market vulnerabilities to AI-driven growth narratives. Investors can use Sector P/E Ratio API and Industry Classification API to evaluate valuation trends and sector-specific impacts. DeepSeek’s AI model disruption continues to impact global tech markets, especially semiconductor stocks, as markets await U.S. tech earnings and policy decisions.
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