With AI investments taking center stage, South Korea and Taiwan's stock markets have outpaced India in terms of market capitalisation, largely driven by the booming chip manufacturing sector. Meanwhile, India grapples with foreign investors pulling back and a noticeable absence of a cohesive AI strategy.

(Bloomberg) -- Asian stocks declined along with US equity-index futures as enthusiasm for the artificial intelligence trade cooled after driving markets to record highs this year.

India's AI-linked industrial firms are benefiting from booming data centre investments, driving sharp gains in stocks such as Sterlite, HFCL and MTAR.