Fear is increasingly gripping financial markets as investors flee some of the most hyped assets this year amid concern valuations are overstretched.

MSCI’s Asian Pacific Index of stocks retreated 2.3%, its biggest drop since April, paring its 2025 gain to 22%. Equity gauges in Tokyo and Seoul were the biggest losers in the region, sliding at least 2.8%. Tech and AI-related stocks contributed most to the Topix’s slump, with SoftBank tumbling 7.5%. Bitcoin fell below $90,000.