# Japanese and South Korean Stocks Drop as AI Firms Boost China A-Shares

> South Korean stocks fell 3.17% on open as AI supply chain firms report strong earnings.
- Title: Japanese and South Korean Stocks Drop as AI Firms Boost China…
- Summary: South Korean stocks fell 3.17% on open as AI supply chain firms report strong earnings. South Korea's KOSPI index dropped 3.17% on October 19, led by SK…
- Keywords: kospi, sk hynix, samsung electronics, china a shares, ai supply chain, third quarter earnings, share buybacks, state council executive meeting, ministry of commerce, ministry of science and technology, cxmt, demingli
- Source: BigGo Finance — https://finance.biggo.com/news/0ac6b11f-3ae0-48ca-83fb-e58ace2e430d
- Author: BigGo Finance
- Published: 2026-10-19T00:35:44+00:00
- Read time: 1 min
- Topics: kospi, sk hynix, samsung electronics, china a shares, ai supply chain, third quarter earnings, share buybacks, state council executive meeting, ministry of commerce, ministry of science and technology, cxmt, demingli
## Stock Markets Open Lower
Japanese and South Korean stock markets opened broadly lower on October 19.
## KOSPI Falls 3.17%
South Korea's KOSPI index fell 3.17% at the open, with SK Hynix down more than 4% and Samsung Electronics down over 3%.
## Nikkei 225 Drops 0.77%
The Nikkei 225 opened 0.77% lower, extending selling pressure on U.S. tech stocks.
## U.S. Tech Stocks Weakened
U.S. stocks weakened last Friday with the Nasdaq down 2.15% and major tech stocks falling sharply.
## China A-Share AI Firms Report Earnings
China A-share artificial intelligence supply chain companies issued positive third-quarter earnings previews.
## CXMT Reports Profit Swing
CXMT expects a profit of 131 billion to 132.5 billion yuan for the first three quarters, swinging to profit.
## Demingli Reports Profit Swing
Demingli forecasts net profit of 8.65 billion to 8.95 billion yuan, swinging to profit.
## Shengyi Technology Grows Profits
Shengyi Technology reports net profit growth of 164% to 181% year-on-year.
## Hengtong Optic-Electric Grows Profits
Hengtong Optic-Electric forecasts net profit up 151% to 168% year-on-year.
## State Council Emphasizes AI
China's State Council Executive Meeting emphasized deepening the 'AI+' initiative.
## Export Restrictions Proposed
China's Ministry of Commerce and Ministry of Science and Technology proposed adding 23 AI technologies to export restrictions.
## Share Buybacks Announced
STAR Market companies launched share buybacks, with CXMT proposing a buyback of 1 billion to 2 billion yuan.
## AI Policy Signals
China's AI policy signals include expanding the 'AI+' initiative and strengthening computing power coordination.
## Market Reaction
U.S. AI stocks lost $1.1 trillion in market value this week while China A-shares showed resilience.
## Key takeaway

South Korea's KOSPI index dropped 3.17% on October 19, led by SK Hynix and Samsung Electronics, while China A-share AI supply chain firms reported profit growth and buybacks.