South Korea’s benchmark index leads regional losses amid profit-taking after a sharp AI-driven rally in chip stocks.
Asian stock markets retreated Tuesday as a selloff in technology shares dragged down major indices. South Korea’s KOSPI index slumped 7.76% to 7,420, its steepest drop in months, as investors locked in gains from a recent AI-fueled rally. Samsung Electronics fell over 5% despite reporting strong profit growth driven by AI data center demand, while SK Hynix declined nearly 4% ahead of its planned US listing.
Japan’s Nikkei 225 dropped 1.95% to 68,380, with tech and electronics firms leading declines. Kioxia Holdings and Lasertec plunged 8.3% and 6.4%, respectively, while financial stocks like Mitsubishi UFJ and Mizuho Financial rose 3.5% and 3.2%. Economic data showed a 3.2% rise in nominal wages for May, but household spending dipped 0.4%.
Greater China markets also weakened, with Hong Kong’s Hang Seng slipping 0.60% to 23,470 and the SSE Composite losing 1.29% to 3,990. The tech-driven downturn overshadowed Wall Street’s prior session gains.