Emerging-market equities fell for a second day and are headed for a weekly decline as concerns over stretched AI valuations dragged technology shares lower, triggering a selloff across Asia.

The MSCI Emerging Markets Index dropped 0.5% on Friday, extending losses to 1.2% for the week. Chipmakers in Taiwan and South Korea led declines, while Chinese tech giants also slipped amid profit-taking in AI-related names.

Rising crude prices added to pressure, with Brent crude climbing above $85 a barrel, fueling inflation worries and reducing the appeal of risk assets. Investors are reassessing exposure to high-growth sectors after a prolonged rally.

Analysts say the pullback reflects valuation concerns rather than fundamental deterioration. However, continued volatility in oil markets and uncertainty over global interest rates could keep emerging markets under pressure in the near term.