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Asian Tech Stocks Retreat As AI Sell-Off Spreads

Technology stocks across Asia fell on Thursday, extending the weakness seen on Wall Street as investors continued to reassess valuations in the AI sector.

The sharpest losses came from semiconductor companies. South Korea’s SK Hynix dropped nearly 10%, while Samsung Electronics fell more than 6%. In Japan, SoftBank Group lost 4.4%, Tokyo Electron declined more than 5%, Advantest fell 2.1%, and memory chipmaker Kioxia slid almost 9%. Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, also traded lower.

The decline followed a strong rally a day earlier, highlighting the heightened volatility that has become a defining feature of AI-related stocks.

AI Investment Outlook Remains Intact

Despite the market pullback, analysts say the sector’s long-term fundamentals remain unchanged.

J.P. Morgan said recent selling across Asian technology shares does not signal a weakening AI investment cycle. While investors have questioned whether major technology companies can sustain record levels of AI spending, the bank does not expect hyperscalers to scale back their capital expenditure.

“Stepping away from the share price moves, we do not see any fundamental indicators that signal meaningful weakness in the next 6-12 months,” the bank said.

Demand Continues To Support The Sector

A separate report from S&P Global pointed to continued strength in technology demand, driven largely by artificial intelligence and defence spending.

According to the report, global output in the technology equipment sector expanded in July at its fastest pace since May 2021, while software and IT services also recorded their strongest growth in ten months.

The latest market moves suggest investors remain sensitive to short-term shifts in sentiment. Even so, analysts continue to view AI as one of the strongest long-term drivers of demand for semiconductor manufacturers and technology companies.

Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.

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