HONG KONG - South Korea's Kospi index dropped more than 10 percent Tuesday because of intense selling in chipmaking stocks. These shares have fluctuated lately amid doubts about the long-term viability of the artificial intelligence surge.

Oil prices decreased over 1 percent, and U.S. futures showed little movement.

Trading paused briefly when the Kospi hit its lowest point since April, with Samsung Electronics and SK Hynix shares falling steeply. By midday, the index stood at 6,051.19, down 10.5 percent.

Samsung shares declined 12 percent, and SK Hynix shares fell 12.7 percent.

Analysts point to anticipated competition from Chinese AI startups and chip producers as a key reason for the selloff in AI-related stocks. This competition could erode profits for global firms that have seen massive gains from the AI boom.

The 466 percent surge in Chinese chipmaker CXMT stock on its debut Monday highlights these worries. CXMT secured at least 8.6 billion dollars in its initial public offering on Shanghai's STAR exchange.

Other Asian markets declined too. Tokyo's Nikkei 225 fell 4 percent to 62,350.18. Taiwan's Taiex dropped 3.9 percent.

Hong Kong's Hang Seng slipped 0.1 percent to 25,178.21, and the Shanghai Composite lost 1 percent to 3,820.52.

In Australia, the S&P/ASX 200 went against the trend, rising 0.6 percent to 8,944.40.

Oil prices continued falling as the U.S. and Iran avoided attacks for a third consecutive day.

Middle East officials noted progress by mediators in returning the parties to talks.

Brent crude dropped 0.8 percent to 85.16 dollars per barrel.

U.S. crude benchmark fell 0.9 percent to 81.86 dollars per barrel.

Wall Street stocks ended mixed on Monday. The S&P 500 gained less than 0.1 percent, the Dow Jones Industrial Average rose 0.5 percent, while the Nasdaq composite declined 0.2 percent, marking its fourth straight drop.