Seoul chip rout sends Asian stocks to two-month low
SPY•Emerging Asian equities fell nearly 3.5% to their lowest since early August, as South Korea’s KOSPI dropped 5.5% and SK Hynix slid 10%. Investors weighed Chinese memory-chip competition, the durability of the AI-driven semiconductor rally and high borrowing costs.
1. Regional shares fall
An index tracking emerging Asian equities tumbled nearly 3.5% to its lowest level since early August, while a broader Asia-Pacific gauge excluding Japan fell nearly 3%. South Korea’s KOSPI closed down 5.5%, extending its losses to nearly 14% over five sessions; a 7.4% intraday drop triggered a temporary curb on program trading.
2. Chip stocks lead losses
Samsung Electronics fell 7.4% and SK Hynix slid 10%. Taiwan’s TSMC shed nearly 2% ahead of earnings later in the week, while the South Korean won weakened as much as 0.8%. Reports that Chinese memory-chip maker CXMT had made progress on a new server-memory chip fueled concerns about competition, though some investors said its advances were not in high-bandwidth memory.
