Seoul chip rout sends Asian stocks to two-month low
SMH•Emerging Asian equities fell nearly 3.5% to their lowest since early August as South Korean chipmakers sold off. South Korea’s KOSPI dropped 5.5%, extending its five-session decline to nearly 14%, while SK Hynix fell 10%.
1. Regional stocks slide
An index tracking emerging Asian equities fell nearly 3.5% to its lowest since early August, while a broader Asia-Pacific gauge excluding Japan lost nearly 3%. South Korea’s KOSPI closed down 5.5%, its weakest finish since July 30, after falling as much as 7.4% and triggering a temporary curb on program trading.
2. Chipmakers under pressure
Samsung Electronics fell 7.4% and SK Hynix slid 10%, as concerns about Chinese competition and the durability of the AI-driven semiconductor rally weighed on sentiment. Reports of progress by Chinese memory-chip maker CXMT on a new server-memory chip raised questions about competition, while investors also cited high borrowing costs. Taiwan’s TSMC fell nearly 2% ahead of earnings later in the week.
