Asian Shares Fall as AI-Fueled Rally Loses Steam

Asian equities declined on June 5, 2026, as the artificial intelligence rally paused and investors locked in profits following recent gains. The pullback mirrored a muted session on Wall Street overnight. Japan’s Nikkei 225 fell 1.2% to 38,150.43, while Hong Kong’s Hang Seng Index shed 0.8% to 21,890. South Korea’s Kospi dropped 0.9%, dragged by semiconductor shares. The declines tracked a 0.6% loss in the tech-heavy Nasdaq Composite on June 4, after a blistering advance in AI-related companies showed signs of fatigue. The pause comes after a multi-month surge in chipmakers and software firms tied to AI infrastructure, with some analysts citing elevated valuations as a near-term risk. Market attention now shifts to U.S. jobs data later this week for fresh direction.