The tech-heavy Nasdaq Composite dropped 2.6% overnight, while the PHLX Semiconductor Index plummeted 6.7%, marking their steepest declines since June. This volatility spilled into Seoul, where the Kospi tumbled as much as 4.1% during Friday’s session. The index is now trending toward its fourth consecutive week of losses.
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Kospi Slumps to Six-Month Low as AI Market Sentiment Sours
A sharp retreat in U.S. technology stocks has triggered a wave of selling across Asian markets, pushing South Korea’s Kospi to its lowest close since April. Investors are increasingly wary of the heavy, debt-financed capital expenditures required to sustain the current artificial intelligence boom, sparking a broad sector correction.
Local tech giants faced significant pressure as market confidence wobbled. Shares of Samsung Electronics fell by 5.1%, while SK Hynix experienced extreme volatility, dropping 4.2% before attempting a partial recovery. The cooling appetite for AI-related assets has already disrupted corporate strategy; SK Hynix confirmed it is abandoning plans for a U.S. listing of its subsidiary, Solidigm, citing the shifting financial environment.
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