Emerging market assets slipped for a third consecutive session on Tuesday, with South Korean equities leading the downward charge. The Korean market selloff pulled regional currencies lower and dragged broader EM stock indices into negative territory, reversing weeks of steady gains across developing economies.

Investor appetite for artificial intelligence stocks showed signs of cooling, removing a primary support for risk assets in Seoul and beyond. Technology shares that had powered recent EM rallies came under pressure as traders reassessed valuations in the sector. The shift in sentiment hit South Korea particularly hard given its concentration of semiconductor and tech exporters.

Currency markets reflected the risk-off mood, with emerging market exchange rates broadly weakening against the dollar. Traders moved toward safer havens as the AI-driven momentum trade that had lifted EM assets earlier in the year began to unwind. The sustained decline suggests positioning adjustments rather than panic selling.

The three-day slide represents a meaningful pullback for emerging markets, which had outperformed developed peers during much of the AI enthusiasm phase. With South Korean equities serving as the primary drag, investors are watching for signs of stabilization in tech-heavy markets that have become increasingly correlated with global risk sentiment.