Seoul stocks slide 3.7% as chipmakers lead Asian sell-off
South Korea's main stock index fell 3.7% on Tuesday as foreign investors sold, Chosun Biz reported. SK hynix lost about 4% and Samsung lost 3%, Chosun Biz and AFP reported. Tokyo and Hong Kong also fell as worries about the AI spending boom grew ahead of big earnings reports, AFP reported.
South Korea's Kospi closed down 3.73% at 5,552.74 on Tuesday, giving back two days of gains, Chosun Biz reported. AFP reported that chip giants led heavy losses across Asian markets as investors brushed off a rebound on Wall Street amid growing fears about the AI investment boom.
Foreign investors and institutions were net sellers in Seoul, while individuals were net buyers, Chosun Biz reported. SK hynix fell 4% to close at 1.22 million won amid controversy over a planned dual listing by its US unit Solidigm, Chosun Biz reported. AFP put the SK hynix drop at 4.2% and said Samsung lost 3%. Data center firm Elice collapsed more than 30% on its trading debut, AFP reported.
The selling came even though the Philadelphia Semiconductor Index rose overnight, breaking a losing streak, Chosun Biz and AFP reported. "Concerns about credit and profitability surrounding AI were not completely resolved, limiting the sustainability of the rebound," said Lee Kyung-min, a researcher at Daishin Securities, Chosun Biz reported. He added that news that President Donald Trump sold chip stocks such as Micron and AMD from an account in his name also weakened sentiment, Chosun Biz reported.
The Nikkei 225 in Tokyo dropped more than 1%, as Kioxia shed more than 4% and SoftBank plunged 6%, AFP reported. There were also losses in Hong Kong, Sydney and Singapore, while Jakarta and Shanghai rose, AFP reported. The Kosdaq in Seoul fell 3.33%, Chosun Biz reported.
Since record highs in June, traders have questioned high valuations and when companies will see returns on huge AI spending, AFP reported. Rising interest rates have also drawn attention to some firms' debt, AFP reported. "The market is no longer trading the headline numbers in isolation," said Stephen Innes at SPI Asset Management, AFP reported. Meta and Tesla report earnings this week, AFP reported.
What we know: The Kospi fell 3.73% on Tuesday, led by chip stocks, as other Asian markets also slid.
What we don't: Whether the sell-off deepens as big tech companies report earnings this week.
Where outlets agree Chosun Biz and AFP report that the Kospi fell more than 3% on Tuesday as SK hynix and Samsung led chip stocks lower.
Where they differ The outlets cited here report the same key facts so far.