Asian markets saw a sharp selloff as investor sentiment around AI stocks reversed. South Korea’s KOSPI plunged more than 9% intraday to around 8,300 points, triggering a 20-minute trading halt. Samsung Electronics fell 7.4%, while SK Hynix dropped 10.1%, with the two chipmakers accounting for roughly half of the KOSPI’s market value.
Japanese equities also came under heavy pressure. The Nikkei 225 fell more than 3%, led by steep losses in technology stocks. SoftBank Group tumbled nearly 10%, while memory-chip maker Kioxia sank about 14% after a strong rally in recent months driven by AI optimism.
The broader regional downturn pushed the MSCI Asia Pacific Index down 3% to 277.27 points. Analysts said AI-related stocks had become vulnerable after sharp gains, with concerns growing over elevated valuations and the cyclical nature of the semiconductor industry.
Chinese markets were also weak. The Shenzhen Component Index dropped more than 3%, the ChiNext Index fell over 4%, and the Shanghai Composite lost 1.56%. Defu Technology plunged more than 14%, Tongguan Copper Foil fell over 11%, and more than 2,700 Chinese stocks ended lower. Hong Kong’s Hang Seng Index fell over 2%, while the Hang Seng Tech Index dropped more than 3%.
Commodity-linked and technology sectors were among the worst performers across China. Non-ferrous metals, lithium, PCB-related companies and rare-earth magnet stocks saw broad declines. China Molybdenum was the biggest loser on the Hang Seng Index, falling more than 10%.
The weakness spread globally. European stock futures fell more than 1%, Nasdaq-100 futures dropped over 2%, S&P 500 futures lost around 1%, and Dow futures fell 0.36%. Australia’s S&P/ASX 200 closed 0.38% lower at 8,782.70, while Shanghai precious metals futures also declined, with silver falling 6%, gold down 1.92%, platinum down 2.93% and palladium losing 2.60%.
Cryptocurrencies also came under heavy pressure. Bitcoin fell below $63,000, triggering a wave of liquidations across the digital asset market. More than $150 million worth of long positions were wiped out in just 15 minutes as risk-off sentiment intensified across global markets.
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