# 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.
- Title: Asian Markets Plunge on AI Funding Warnings · BigGo Finance
- Summary: 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…
- Keywords: kospi, nikkei 225, coreweave, philadelphia semiconductor index, samsung electronics, sk hynix, deepseek, ai funding, credit risk, semiconductor stocks, finance, markets
- Source: BigGo Finance — https://finance.biggo.com/news/8b45e38e-4f73-462e-aa71-b2194c47b73d
- Author: BigGo Finance
- Published: 2026-10-19T01:25:27+00:00
- Read time: 2 min
- Topics: kospi, nikkei 225, coreweave, philadelphia semiconductor index, samsung electronics, sk hynix, deepseek, ai funding, credit risk, semiconductor stocks, finance, markets
## 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.
## Key takeaway

Asian markets plunged after AI infrastructure credit risks caused KOSPI to break 5,500 and Nikkei 225 to drop 1,493 points.