Asian Stocks to Drop on AI Angst, China to Return: Markets Wrap

Asian markets faced declines Tuesday as Wall Street’s AI-driven selloff spilled over, with investor concerns about AI’s profit impact on corporations intensifying overnight. Tariff tensions compounded the downturn, pressuring equities across the region amid fears of escalating trade barriers disrupting global supply chains and economic growth. Safe-haven assets surged, with Treasuries and gold rallying as traders sought stability, reflecting heightened risk aversion in volatile market conditions. Bitcoin slumped sharply, extending losses as cryptocurrency markets reacted to broader macroeconomic uncertainty and shifting investor sentiment away from high-risk assets. The selloff follows a week of mixed signals, with China’s markets poised for a rebound after recent underperformance, though broader regional trends remain bearish.