Asian equities are poised to dip Thursday as momentum from the AI enthusiasm that drove rallies in prior sessions cools. Markets are recalibrating valuations on AI mega-cap plays after recent gains, with traders taking profits on tech positions.
The pullback signals a normalization in AI-driven market rotation. While long-term AI infrastructure thesis remains intact, near-term sentiment is cooling on mega-cap concentration and fund flows are diversifying into beaten-down sectors and non-tech cyclicals.