Precise Investors Editorial Team
The KOSPI was last down 5% as heavyweight chipmakers Samsung Electronics Co Ltd and SK Hynix Inc dropped 7.5% and 9.2%, respectively
South Korean stocks led losses across Asia on Thursday as a new selloff in artificial intelligence-linked shares hammered semiconductor makers, with concerns over AI infrastructure spending outweighing resilient economic data.
The KOSPI was last down 5% as heavyweight chipmakers Samsung Electronics Co Ltd and SK Hynix Inc dropped 7.5% and 9.2%, respectively.
South Korea’s technology heavyweights bore the brunt of the selloff, with SK Hynix declining to its lowest level since June 17 and Samsung Electronics slipping to its weakest level since June 8, reflecting growing investor caution over whether the AI-driven chip rally can sustain its pace.
The pressure spread across the broader semiconductor supply chain. Nikkei 225 declined 1.6% even as the broader TOPIX edged 0.5% higher.
Among chip-related names, Kioxia Holdings Corp tumbled 13.3%, Ibiden Co Ltd shed 7.9%, Murata Mfg Co and Furukawa Electric Co., Ltd. each dropped 7.2%, while Mitsui Mining and Smelting Co. declined 9.6%, highlighting broad-based selling across AI suppliers.
Outside the technology sector, SoftBank Group Corp. gained 1.5% after it was reported the firm had revived talks on a $10 billion loan backed by its OpenAI stake to support its AI investment plans., while KakakuCom Inc advanced after reports that Bain Capital and LY Corp had raised their takeover proposal for the online price-comparison operator.
Mainland Chinese markets proved relatively resilient. The Shanghai Composite shed 1.9%, while the Shanghai Shenzhen CSI 300 slid 0.9%, surrendering earlier gains despite stronger manufacturing surveys and expectations for additional policy support.
Economic releases took a back seat as investors remained focused on the outlook for AI spending.
ASX 200 slid slightly after the country clocked an unexpected trade deficit in May, raising concerns over cooling overseas commodity demand after an otherwise strong run this year.
Jakarta Stock Exchange Composite Index added 1.8%, while Nifty 50 Futures advanced 0.4%.
South Korea’s latest inflation data also matched expectations, suggesting price pressures remained broadly stable, while export growth continued to underscore the resilience of the country’s external sector. Nevertheless, Thursday’s sharp decline was driven more by a shift in technology sentiment worldwide than by weakening domestic fundamentals.
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