The Asia-Pacific market experienced a widespread decline on Tuesday, mirroring the downturn observed as investors persisted in reallocating their portfolios away from the artificial intelligence sector in the United States. Shares of AI plays, such as Oracle and Broadcom, experienced declines of over 5% and 2% respectively, while Microsoft also recorded some losses. In Asia, South Korea’s Kospi experienced a decline of 2.24%, marking the most significant drop in the region and concluding at 3,999.13. Meanwhile, the small-cap Kosdaq decreased by 2.42%, finishing at 916.11. The Kospi has, for the first time in almost two weeks, dipped below the 4,000 threshold.

Shares of Korea Zinc experienced a significant decline of nearly 14% following reports that the company has reached an agreement to sell $1.9 billion worth of shares to a joint venture overseen by the U.S. government along with unidentified U.S.-based strategic investors, as per sources. ADEL, a medical treatment company, has entered into a drug development agreement with the French pharmaceutical giant Sanofi, with a potential value of up to $1.04 billion, as reported by the South Korean-based firm late Monday.

The Hang Seng index in Hong Kong experienced a decline of 1.54%, closing at 25,235.41, primarily influenced by the performance of basic materials and education stocks. The mainland Chinese CSI 300 experienced a decline of 1.2%, concluding at 4,497.55, which represents its lowest point since November 25. Japan’s Nikkei 225 experienced a decline of 1.56%, primarily influenced by the performance of financial and energy stocks, concluding at 49,383.29. Meanwhile, the Topix saw a decrease of 1.78%, settling at 3,370.5. Japan’s flash composite PMI revealed a moderated pace of expansion in December, registering at 51.5, down from the prior month’s 52.

Australia’s S&P/ASX 200 experienced a decline of 0.42%, reversing previous gains and concluding at 8,598.9. Flash purchasing managers index numbers from S&P Global indicated that business activity in Australia experienced a deceleration in December, as the composite PMI decreased to 51.1 from November’s 52.6. Overnight in the U.S., the S&P 500 experienced a decline of 0.16% after starting the session on a positive note. The Dow Jones Industrial Average experienced a slight decline, whereas the tech-centric Nasdaq Composite decreased by 0.59%.