Asian stocks hit 2-month low on AI jitters, bonds find favour - Reuters

Asian equities fell to their lowest level in two months, with technology and artificial-intelligence-related shares leading the decline, according to Reuters. The pullback reflects a reassessment of AI-linked valuations after a strong run, rather than a single company-specific event. When a narrow group of stocks has driven much of an index's gains, shifts in sentiment toward that group can move the broader market.

The move also coincided with renewed demand for bonds, a pattern often described as a rotation toward defensive assets. Bond prices rise as yields fall, so this kind of flow can signal that investors are seeking steadier returns while they reassess risk in growth-oriented sectors.

For observers, the key questions are whether the selling stays confined to AI names or broadens across sectors, and whether bond demand persists or fades. Earnings guidance from major technology firms and upcoming inflation and rate commentary are likely to shape whether this is a short-term pause or the start of a longer repricing.