Asia-Pacific markets set to fall, tracking Wall Street declines on AI valuation concerns

Market Overview - Asia Pacific markets experienced declines, reflecting losses on Wall Street, particularly in artificial intelligence-related stocks like Palantir [1][3] - Australia's S&P/ASX 200 fell by 0.19%, Japan's Nikkei 225 decreased by 0.25%, South Korea's Kospi dropped by 1.9%, and the small-cap Kosdaq lost 0.95% [1] U.S. Market Performance - The S&P 500 declined by 1.17% to close at 6,771.55, while the Nasdaq Composite fell by 2.04% to finish at 23,348.64 [4] - The Dow Jones Industrial Average lost 251.44 points, or 0.53%, closing at 47,085.24 [4] - Palantir shares decreased by approximately 8%, despite the company surpassing Wall Street's estimates for Q3 and providing strong guidance driven by growth in its AI business [4] Valuation Concerns - AI stock gains have pushed the S&P 500's forward price-earnings ratio above 23, nearing its highest level since 2000, indicating potentially stretched valuations [5] - Analysts have expressed concerns about the market being due for a correction, as highlighted by comments from CEOs of Goldman Sachs and Morgan Stanley [3][5]