Asia stocks hit 2-month low as South Korean chipmakers plummet
SOXX•Emerging Asian stocks fell more than 3% to a two-month low, while South Korea’s KOSPI dropped more than 7%. Samsung Electronics and SK Hynix each lost around 9% amid concerns about Chinese competition, AI trade unwinding and borrowing costs.
1. Regional stocks fall
An index tracking emerging Asian equities tumbled more than 3% to an over two-month low on Tuesday. South Korea’s KOSPI shed more than 7%, extending its losses to nearly 16% over five sessions, and the decline triggered a temporary curb on programme trading.
2. Chipmakers slide
Samsung Electronics and SK Hynix each fell around 9% to mid-August lows. Investor sentiment weakened on concerns that Chinese semiconductor makers are narrowing the technology gap after reports suggested CXMT had made progress on a new server memory chip. Taiwan stocks fell around 2.5%, while TSMC declined nearly 2% ahead of its quarterly earnings later in the week.
3. Market concerns
Investors were also concerned about the durability of the AI rally and high borrowing costs. BNP Paribas Asset Management’s Song Zhe said the selloff reflected a sharp reset in expectations rather than a sudden deterioration in underlying AI demand.
