From BigGo Finance · BigGo Finance · · 2m
Asian Markets Plunge on AI Funding Warnings
AI funding fears trigger Asian market crashes as KOSPI breaks 5,500 and Nikkei drops 1,400 points.
In brief
AI funding fears trigger Asian market crashes as KOSPI breaks 5,500 and Nikkei drops 1,400 points. Asian markets plunged after AI infrastructure credit risks caused KOSPI to break 5,500 and Nikkei 225 to drop 1,493 points. Originally reported by BigGo Finance.
Asian markets tumble
Asian markets tumbled in unison on the 19th as concerns spread over the borrowing burden and credit risk of AI infrastructure companies.
KOSPI breaks 5,500
The KOSPI opened down 3.17% at 5,488.41, breaking through the 5,500 level.
Nikkei drops 1,400 points
The Nikkei 225 fell more than 1,400 points intraday and lost the 64,000 mark.
Philadelphia Semiconductor Index declines
The Philadelphia Semiconductor Index closed with its eighth consecutive decline, the longest streak since the financial crisis.
CoreWeave shares crash
CoreWeave shares crashed 11.91% in a single day, spreading doubts about the funding pipeline for data center investment.
Samsung and SK Hynix plunge
Samsung Electronics and SK Hynix plunged 5.80% and 6.53% respectively in premarket trading.
DeepSeek model release
DeepSeek unveiled a new model with a score of 77.0 on a software development benchmark.
Brokerage warnings
Brokerages warned of continued volatility, noting the correction stems not from earnings but from a reevaluation of funding structures and valuations.
Market reaction
Early trading saw retail investors exit with net selling of 300 billion to 500 billion won while foreign investors engaged in net buying.
Credit risk concerns
Doubts over the debt repayment capacity of CoreWeave spread fears that AI capital expenditure could be delayed or scaled back.
Semiconductor sector impact
Micron, Broadcom, AMD, and SK Hynix ADRs all plunged in tandem as credit risk concerns spread.
AI funding cycle correction
Shin Hyun-yong noted this is a correction stemming not from listed companies' earnings but from funding and valuation reevaluation of the AI investment cycle.
What happens next
The market awaits U.S. Big Tech's third-quarter earnings announcements to determine if AI capital expenditure guidance will reverse recent losses.
The essence
Asian markets plunged after AI infrastructure credit risks caused KOSPI to break 5,500 and Nikkei 225 to drop 1,493 points.
