ASEAN+3 warns that AI market correction could destabilise Asian economies

The ASEAN+3 Macroeconomic Research Office’s latest financial stability assessment warns that Asia is especially exposed to a disorderly correction in the artificial-intelligence boom. Because the region sits at the heart of global AI supply chains and is deeply integrated into AI-related financial markets, a sudden drop in AI demand could trigger lower tech exports, portfolio losses, capital flight and refinancing strain on highly leveraged technology and infrastructure companies.

The report cites the concentration of AI-related equity exposure in markets such as South Korea, and the tight link of Japan and Hong Kong to U.S. AI firms, which could transmit shocks even without a domestic trigger. Growing leverage among hyperscalers building data centres and opaque private-credit arrangements may amplify any downturn, potentially spilling over into broader financial instability. Central banks worldwide, including the Bank of England and the Monetary Authority of Singapore, have already voiced concerns about the sustainability of massive AI investments.