Asia-Pacific stock markets suffered a "bloodbath"! Analysts say tech stocks are bleeding heavily, global liquidity is flashing a red light.

Notice that on Friday, Asian markets experienced a significant decline, with global tech stocks plummeting, causing benchmark stock indexes in Japan and Taiwan to fall by as much as 6%. The benchmark Nikkei 225 index in Japan has confirmed entry into a corrective phase, dropping more than 10% since reaching a historic closing high on June 25. Takamasa Ikeda, Senior Portfolio Manager at GCI Asset Management, stated, "The Nikkei index is closely related to the Philadelphia Semiconductor Index (SOX). The rapid rise in the SOX index is unsustainable, and now it has seen a correction. The correction was anticipated, but it happened earlier than the market expected." "The market has started to be wary of whether the mega-cap cloud service providers can achieve returns that match their massive investments. These investments are funded by high leverage loans from banks and private lending institutions." Christopher Forbes, Head of CMC Markets Asia and Middle East, said, "The financial performance of these (tech stocks) is good. But it precisely indicates how much expectations have already been priced in. SpaceX is currently a good gauge of market sentiment, and it is trading below its IPO price." Forbes pointed out, "I still don't see any panicpeople are buying gold and silver, which have traditionally been losing trades." "But the reality is, everyone is watching as interest rates rise...hence the market is selling off." John Havers, Senior Economist at SEB in Scandinavia, said, "This may be the result of multiple factors at play, with part of the selling driven by profit-taking in many AI stocks, along with repeated questioning of the AI investment bubble. SpaceX's bad IPO performance has made many investors nervous." Kei Okamura, Portfolio Manager at Neuberger Berman, said, "I think the Federal Reserve is likely a trigger. Kevin Wash's comments and the shift in perception towards what seems to be a rather hawkish Fed policy have sparked a chain reaction of selling off." "In terms of selling pressure, we are starting to see a greater momentum, starting first with highly-anticipated prominent companies like SK Hynix and Samsung, and then the selling pressure gradually spreading." "Therefore, the movement of the Nikkei index is equally bad, if not worse. The term 'bloodbath' is accurate, as this is a comprehensive crash." Fabian Yap, Market Analyst at IG Group, noted, "I believe investors are now focused on sustainability, not just on whether growth figures will rise...but more on whether these figures can be sustained while maintaining a healthy balance sheet." "Retail investors have borrowed money to participate in this remarkable AI frenzy, so I believe the unwinding of leveraged positions will exacerbate the downturn." "If the selling pressure continues into the US market session tonight, I believe the reopening of the South Korean stock market will be quite brutal." Masakazu Hazes, Researcher at Iwai Cosmo Securities Investment Research Department, stated, "I think the market correction is prolonging as a reaction to the sharp rise earlier. Even so, I do not believe that the business environment surrounding AI and semiconductor companies or the outlook for semiconductor demand has changed." Naoki Fujiwara, Senior Fund Manager at Shinkin Asset Management, said, "The market cannot trust the outlook for semiconductor manufacturers, even though demand is expected to increase, because their clients may have placed orders before prices go up...Next week, we will have earnings reports from companies like Alphabet, who are users of semiconductor chips. If their outlook is strong, the stock market may rebound." The fund manager said, "If the Nikkei index falls to 63,000 points, it means the Price/Earnings ratio (PER) of stocks is 17 times, which is cheap relative to the current environment." Wen Xunneng, CEO of Zuliu Asset Management, said, "The global AI bubble is bursting. The A-share correction follows the pullback in the South Korean and US stock markets." "The AI industry continues to expand, but it does not mean that stocks will keep going up." "Many quant funds in China are also amplifying volatility. It will take a considerable amount of time for Chinese tech stocks to stabilize." Shrikant Kale, Senior Quantitative Strategist at J.P. Morgan, pointed out, "The market may be starting to digest the impact of crowded AI beneficiaries' profit growth expectations returning to normal, transitioning from pricing nearly perfect execution and perpetual upgrades to a more sustainable growth trajectory." Zhang Zhiwei, Chief Economist at BNY Mellon Asset Management, said, "This (correction) seems to be mainly technical, rather than fundamental factors. Expectations for tech capital expenditure do not seem to have changed significantly. This is more of an adjustment of crowded positions, resulting in some degree of stampede." Gary Tan, Portfolio Manager at Singapore Wan Jia, said, "From the flow of funds we see, this seems more like the crowded AI trades bubble being squeezed out, rather than an unconscious reaction to rising yields. The flow of funds in the stock market indicates that investors are taking profits from some of the biggest AI winners, rather than rotating firmly into lagging stocks this year like software, consumer, and internet."