Global Markets
Home›Global Markets›Asia›Korean stocks slide as rising yields weigh on chip sha…
Korean stocks slide as rising yields weigh on chip shares
KOSPI fell as much as 6.8% Wednesday, with Samsung Electronics and SK Hynix each dropping more than 8% at the lows, while an Asian semiconductor gauge declined 3.2%.
South Korea led a selloff across Asian chip stocks as elevated bond yields intensified concerns about higher borrowing costs and the large cash outlays associated with Big Tech spending, according to LiveMint Markets.
The Korean benchmark KOSPI tumbled as much as 6.8% before paring losses. Samsung Electronics and SK Hynix each fell more than 8% at their lows, and a Bloomberg gauge of Asian semiconductor names dropped 3.2%.
Other regional names also weakened, with Kioxia Holdings down as much as 11% and Taiwan Semiconductor Manufacturing nearly 2% lower. The declines tracked weakness in US semiconductor and other AI-related shares, as investors cited persistent worries about inflation and rising government debt keeping yields elevated.
Market participants pointed to a mix of profit-taking and shifting expectations for AI-linked growth, with analysts noting that higher rates and geopolitical risk are making investors less willing to pay a premium for that growth. Even so, LiveMint Markets said the Bloomberg Asian chip index remains down 19% from its June record high after earlier rallies helped push Samsung and SK Hynix market values to more than $1 trillion each.
Latest closeKospi 6,813.34 ▲3.6%