World shares are mixed, while South Korea’s Kospi sinks nearly 11% on heavy selling of chipmakers
Foreign investors sold 5 trillion won as chipmaker losses deepened concerns over AI spending and Chinese competition.
- South Korea’s benchmark Kospi index suffered its largest single-day drop in five months on Tuesday, plunging 10.84% to close at 6,023.66 after an aggressive sell-off in semiconductor heavyweights triggered automatic trading halts.
- The massive market rout was led by the country's two dominant memory-chip makers, with SK Hynix plummeting 14.7% and Samsung Electronics sinking 13.4%, wiping out billions in market value as foreign investors dumped a net 5 trillion won in shares.
- Global market sentiment was severely rattled by a technology report indicating that Chinese firm Shanghai Yuliangsheng has broken the Western monopoly by beginning mass production of homegrown deep ultraviolet chipmaking tools.
- Investor anxiety was further stoked by fears that the prolonged artificial intelligence boom is turning into a capital expenditure bubble, amplified by a massive 466% trading-debut surge from Chinese rival memory-maker CXMT in Shanghai.
- While regional neighbors felt the tech pain—with Tokyo's Nikkei diving 4% and Taiwan dropping over 4%—global markets outside of Asia remained mixed, as early European indexes like the FTSE 100 and DAX managed modest gains of 0.6%.
121 Articles
121 Articles
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Big Tech is pouring money into artificial intelligence at a pace never before seen. Hundreds of billions flow into chips, data centers and power plants each year. Yet the returns remain far from certain. Investors have started to notice. Shares of the leading AI players slid 15% from their June peak. Alphabet shed 7% after its latest quarterly report. South Korea’s market dropped 10% on Monday as chipmakers such as Samsung and SK Hynix felt the …
South Korea's KOSPI posts biggest fall since early March ...
At around 1410 GMT, the Dow Jones, with an industrial colouring, took 0.79% while the Nasdaq index, more tech oriented, fell by 1.11% and the expanded S&P 500 index fell by 0.19%. "The market is clearly looking to position itself (...) investors still want to invest in technologies, but some fluctuations make them a little nervous. It is certain that the movements observed in Asia do not fail to destabilize them," comments AFP Steve Sosnick, of …
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