*

South Korea's KOSPI index falls 6.2%, worst since August

last

year

*

MSCI EM Asia down 2.6%, worst since April

*

Concerns over AI-driven market valuations trigger sell-off

Nov 5 (Reuters) - Equities across Asian emerging markets

suffered their steepest drop in weeks on Wednesday, with South

Korea's benchmark gauge slumping more than 6%, as fears over

stretched valuations eroded investors' risk appetites.

The MSCI index of emerging Asia equities

shed 2.6% in its worst intraday decline since the early April

"Liberation Day" tariff turmoil, while a gauge tracking ASEAN

equities slipped to a two-week low, dragged

lower by Singapore.

Stocks are beating a hasty retreat across Asia on fears that

equity markets may have become overstretched after an artificial

intelligence-driven rush drove most benchmark gauges to record

levels.

A selloff was triggered after the CEOs of Morgan Stanley ( MS )

and Goldman Sachs ( GS ) questioned whether sky-high

valuations could be sustained.

"Retail investors and hedge funds have been extremely

exposed on the long side to technology stocks in particular

globally," said Jon Withaar, a senior portfolio manager at

Pictet Asset Management in Singapore.

"A combination of some negative CEO comments on valuation

overnight combined with the violent downward move in crypto has

damaged sentiment."

South Korea's KOSPI index toppled 6.2% in its worst

intraday fall since August 2024, abruptly reversing course after

a 20% surge since the start of October propelled it to record

highs.

Its currency, the won, extended losses, weakening

0.6% to its lowest point since mid-April.

Chipmakers Samsung Electronics and SK Hynix

fell 8% to 9%, with the former clocking its worst

session in 15 months.

Taiwan's benchmark index shed 2.6% to fall by the

most in three weeks, after advancing more than 10% in October on

the AI-fuelled rush into equities. Its dollar weakened

for the sixth consecutive session to hit its lowest point since

early May.

In Southeast Asia, Singapore's FTSE Straits Times index

slipped 1%, weighed by lenders DBS Group, OCBC

, and United Overseas Bank, which lost

between 0.5% and 1.6%.

Indonesia's Jakarta Composite index and Malaysia's

KLCI slid around half a percentage point each, while the

benchmark Philippine stock index shed 1%.

HIGHLIGHTS:

** Yield on Indonesia's 10-year bonds inches

lower to 6.153%

** Philippine annual inflation at 1.7% in October

** Malaysia's central bank to hold rate at 2.75% through

2026 - Reuters poll

** Bank of Japan debated growing case for rate hike,

September minutes show

Asia stock indexes and currencies at 0233 GMT

COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS

% % DAILY YTD %

%

Japan +0.37 +2.66 -4.36 23.45

China India 0.00 -3.43 0.00 8.26

Indones -0.21 -3.83 -0.38 15.97

ia

Malaysi -0.02 +6.48 -0.52 -1.66

a

Philipp -0.39 -1.14 -1.16 -11.18

ines

S.Korea Singapo -0.02 +4.41 -0.74 15.90

re

Taiwan -0.18 +5.87 -2.21 19.36

Thailan +0.06 +5.38 0.00 -7.3

d