Amro Warns Asia Faces AI Correction Risks

AMRO published its 2026 Financial Stability Report on Monday, Oct. 5, 2026, warning that Southeast Asia, China, Japan and South Korea are particularly exposed to an AI boom correction. AMRO said the region accounted for two-thirds of growth in global AI-related trade, kept its 2026 regional growth forecast at 4.1%, and cited physical production such as memory chips in South Korea and semiconductor assembly in Malaysia. AMRO said a disorderly correction could therefore propagate through multiple channels – including lower technology exports, portfolio losses, capital outflows, refinancing pressure on leveraged technology and infrastructure firms, and weaker investor confidence. It also said a sharp correction in AI-related financial assets could spill over to the broader financial system through forced deleveraging and tighter credit conditions. AMRO flagged South Korea's AI-concentrated equities, Japan and Hong Kong markets moving with U.S. AI and technology stocks, opaque private credit and circular financing, plus energy-price volatility, protectionist measures, and possible El Niño-related food costs. It noted the Bank of England and Monetary Authority of Singapore have raised sustainability concerns about AI investment. Rated left-to-right outlets carried the same AMRO warning; no conflicting figures or disputed claims on the report appear in the record.