Asian markets tumble as US chip slump drags South Korean shares below 3%
South Korean equities fell over 3% as Asian markets slipped, mirroring a 2.7% drop in a US semiconductor index and fading AI optimism.
The MSCI Asia Pacific Index slipped 0.3% on Monday, pulling regional equities lower after a US semiconductor gauge fell 2.7% and the Nasdaq 100 declined 0.7%. South Korean stocks led the downturn, dropping more than 3%, with SK Hynix losing almost 4% after Chinese competitor CXMT announced advances in a higher-capacity memory chip. Sandisk and Micron also posted losses, while Meta Platforms gained over 3% after unveiling its Muse Wonder AI system, bucking the broader tech weakness.
Brent crude fell 0.6% to about $106 a barrel and the US dollar index maintained recent gains. Analysts highlighted persistent pressure on AI-related shares, citing comments from Broadcom’s CEO and warnings from investors like Ray Dalio about a possible bubble. Market focus now shifts to the start of US earnings season and this week’s CPI reading for clues on the Federal Reserve’s next policy step.
Why it matters
The slide shows how US chip weakness and AI sentiment are influencing Asian markets and could affect global investors ahead of earnings season.
How this story developed
- Oct 2 Seoul market slips modestly as US stocks close higher
- Oct 8 The market recorded a third straight day of losses.
- Oct 13 The decline continued a multi‑day slide in the index.
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