Nikkei and Kospi slide sharply on chip stock selloff
The synchronized selloff across Tokyo and Seoul was driven by supply-demand dynamics, including elevated margin buying and leveraged ETF flows.
The Nikkei fell around 3%, with the broader Topix also lower, as chip-related shares underwent a sharp correction. Memory chipmaker Kioxia led Nikkei losses, down roughly 15%, with SoftBank Group and Advantest also falling sharply.
Markets awaited earnings from Taiwan’s TSMC, expected to post a fifth straight quarter of record profit after a roughly 60% jump in net profit last quarter. The Bank of Korea hiked its policy rate 25bp to 2.75%, its first increase in over three years, aimed partly at supporting the won.