Asian markets continued their downward trend on Monday, with South Korea's KOSPI index dropping over 8%, primarily driven by the semiconductor sector. Mark Villan, Chief Investment Officer at Lucerne Asset Management, attributed the decline to position- and momentum-strategy liquidations rather than a reassessment of the AI narrative. Villan noted that South Korean tech stocks, known for their strong performance, became a liquidity source following shifts in interest-rate expectations after the U.S. nonfarm payroll report. The focus now turns to whether spending by mega-cap companies on AI will decelerate, though Villan indicated there is currently no evidence of such a slowdown. The market's reaction underscores the sensitivity of tech stocks to macroeconomic indicators and investor strategies.