From BigGo Finance · BigGo Finance · · 1m 30s
Asian Stocks Plunge on AI Skepticism
Asian stocks tumble as AI investment doubts trigger 4% KOSPI drop and 7% SK Hynix plunge.
In brief
Asian stocks tumble as AI investment doubts trigger 4% KOSPI drop and 7% SK Hynix plunge. Asian stock markets fell 4% on KOSPI and 7% on SK Hynix due to AI investment skepticism and high U.S. Treasury yields. Originally reported by BigGo Finance.
Asian Stocks Plunge
Major Asian stock markets fell in unison on the 20th, failing to extend the previous day's tech-led rebound in New York.
KOSPI Tumbles 4%
South Korea's KOSPI plunged more than 4% in early trading, the weakest performance among Asia-Pacific benchmarks.
SK Hynix Sinks 7%
SK Hynix cratered over 7% to approach its lowest level since April, while Samsung Electronics fell more than 3%.
Elice Plunges 32%
Elice, making its trading debut, plunged as much as 32% intraday, further denting investor sentiment.
MSCI Asia-Pacific Index Falls
The MSCI Asia-Pacific Index fell around 1%, with eight of its 11 sub-sectors declining.
Japanese Markets Decline
Japan's Nikkei 225 dropped 1% and the TOPIX fell 0.9% as AI hardware stocks sold off.
Semiconductor Stocks Drop
Resonac Holdings plunged 6.43%, Fujikura fell 6.34%, and SoftBank Group dropped 6.34% in semiconductor stocks.
U.S. Treasury Yields Rise
The U.S. 10-year Treasury yield held at elevated levels around 5.13%, 5.14%, extending a 6, 7 basis point rise.
Tech Earnings Test
U.S. mega-cap tech earnings, including Meta Platforms, are expected to test the AI rally's durability this week.
Market Sentiment Shift
Risk-aversion sentiment resurfaced as doubts over AI capital expenditure profitability persisted.
The headline
Asian stock markets fell 4% on KOSPI and 7% on SK Hynix due to AI investment skepticism and high U.S. Treasury yields.
