Shares in Asian chip firms plunge further as AI sell-off continues
Asian stock markets, particularly in South Korea, have experienced a significant sell-off following disappointing earnings from chipmaker SK Hynix. Meanwhile, global oil prices have risen amid heightened tensions in the Middle East.
Why it matters
The volatility in the semiconductor sector and rising energy costs pose risks to global economic growth and investor confidence.
Seoul’s Kospi index is dominated by semiconductor manufacturers. Seoul’s Kospi index is dominated by semiconductor manufacturers. Stock markets Shares in Asian chip firms plunge further as AI sell-off continues Drop comes after South Korean company SK Hynix’s results undershot investors’ expectations
Prefer the Guardian on Google Shares in companies linked to AI have plunged further after disappointing results from the South Korean chipmaker SK Hynix, sending the country’s stock market tumbling for the second day in a row .
Seoul’s Kospi index, which is dominated by semiconductor manufacturers, slid by as much as 12.6% at one point on Wednesday, following on from a near 11% slump the previous day, reaching its lowest level since early April.
This means the market is poised for a record two-day fall, representing a remarkable drop of more than 40% from a peak reached a little over a month ago. Japan’s Nikkei also declined 1.5%.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in