Analysis: Tonight's non-farm payroll data may become a new excuse to cut back on AI bets; Broadcom's earnings report triggers alarm bells about an AI overheating trend.

Emerging market assets fell for the third consecutive trading day, led by South Korean stocks, as investor enthusiasm for artificial intelligence stocks waned. The MSCI Emerging Markets Index fell 1.7% to 1728.66 points, while South Korea's KOSPI index plunged as much as 7% on Friday. Chipmakers such as Samsung Electronics and SK Hynix led the decline after Broadcom's AI chip sales prospects fell short of overly high market expectations. These two companies together account for more than half of the market capitalization of the KOSPI. Emerging market stocks and currencies are expected to record weekly declines after two consecutive weeks of gains. Charu Chanana, chief investment strategist at Saxo Markets, said, "Broadcom is a trigger, reminding us how over-expected the market has become. Investors have priced in too many perfect expectations for AI, so even a small disappointment could lead to a fairly sharp revaluation. Stronger-than-expected non-farm payroll data could become another excuse to cut AI investment." (Jinshi)