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AI chip selloff hits Asia overnight: Kospi plunges 7.6%, trading halted, SK Hynix down nearly 11%
First seen on X 14 hours ago@KobeissiLetter ♥ 3,8424 views
The selloff in AI-linked stocks spread from Wall Street to Asia on Oct 15, sending South Korea's Kospi down more than 7%.
The Kospi closed down 7.57% at 5,554.22, its steepest drop since July 28, Yonhap reported. Circuit breakers hit both the Kospi and the Kosdaq, the first time both were triggered on the same day since July 29, according to The Korea Herald. SK Hynix fell nearly 11% and Samsung Electronics 9.5%, The Guardian reported, while Japan's Nikkei 225 lost 4.9%, memory maker Kioxia 11% and OpenAI backer SoftBank 10%.
The slide followed a rough day in New York, where the Nasdaq fell 1.9% after September CPI came in hotter than expected at 3.7%, stoking fears of Fed rate hikes on top of doubts about debt-funded AI spending. The Kobeissi Letter said on X the Kospi is now 40% below its June 19 record high, a post that drew 3,800 likes.
“BREAKING: South Korea’s KOSPI falls another -7% as tech stocks drop sharply. The KOSPI is now down -40% from its record high seen on June 19th.”