A global AI stock rout hit Asia hard on Thursday, then faded as Western markets opened.

South Korea’s KOSPI plunged 7.5 percent to a six-month low, and Japan’s Nikkei fell 5 percent.

By the close, the Dow rose 1 percent, the S&P 500 0.3 percent and the Nasdaq 0.1 percent.

The trigger was anxiety over the debt and circular financing behind the AI buildout.

CoreWeave’s 2032 bonds fell below 80 cents on the dollar, a distressed level.

Treasuries rallied, with the 10-year yield falling 10 basis points to 5.08 percent.

In Europe, Britain’s FTSE climbed 1 percent to a seven-week high.

Read the full article for more details on the AI tech rout.