TOKYO: Japanese tech stocks fell sharply for a second day running on Tuesday (Jan 28) following a plunge in US tech stocks driven by the emergence of a

By Sinéad Carew, Amanda Cooper and Ankur Banerjee LONDON/SINGAPORE (Reuters) - Investors made a quick exit from a host of technology stocks from Tokyo to New York on Monday as the emergence of a low-cost Chinese artificial intelligence model challenged the dominance of current AI leaders such as Nvidia .

Shock to financial markets came from Chinese firm whose AI app it says was made at a fraction of US AI models.

SoftBank Group CEO Masayoshi Son is shifting his focus away from investments in China and toward the US, as seen with his involvement with President Donald Trump and the recently announced Stargate.

Chinese startup DeepSeek has shaken the belief that only a few firms with huge budgets can compete in the artificial intelligence field — potentially challenging an investment case that rewarded the biggest players with rich valuations.

In international markets, chipmaking and electrification companies saw pressure on the fears over the DeepSeek AI service. SoftBank -- the company that said it would fund up to $500 billion in AI infrastructure as well as the main shareholder of microchip designer ARM -- saw its stock dive 8%.

Tech stocks, including Nvidia and Microsoft, drop as China's DeepSeek AI disrupts the market, raising concerns over U.S. dominance in the AI sector.

The partnership formed by Oracle, OpenAI and SoftBank is due to invest up to $500 billion. SoftBank's shares rose 3.7% on Thursday in Tokyo trading after jumping 11% the day before. Elsewhere in Asia, the S&P/ASX 200 in Australia fell 0.6% to 8,383.50, while the Kospi in Seoul lost 0.8% to 2,526.98.

Investors will be looking out for Malaysia’s central bank policy meeting today, where it’s expected to keep its policy rate steady at 3%.

SoftBank CEO Masayoshi Son's plan to invest billions in AI in the United States shows one way to handle the new Trump administration: go big and deal with the details later.

World shares are mixed after China rolled out more moves to boost its lagging stock markets. Hong Kong fell while Shanghai's benchmark gained 0.5%. Officials in Beijing said pension funds

Nasdaq futures slumped and technology shares slid in Japan on Monday as surging popularity of a Chinese discount artificial intelligence model wobbled investors' faith in the profitability of AI and the sector's voracious demand for high-tech chips.