Asian Stocks Including KOSPI Slide As AI Doubts Hit Chipmakers

Asian stocks fall sharply on Tuesday as mounting skepticism over the massive financial returns on artificial intelligence spending triggered a widespread sell-off across global semiconductor shares. The tech-driven downturn rippled from Wall Street into Asian markets, while investors shifted toward safety, driving bond prices higher and sending oil lower.

South Korea’s market bore the brunt of the hit, with the benchmark KOSPI plunging 9.45% to trade near 6,120. Major chipmakers SK Hynix Inc. slumped up to 13%, and Samsung Electronics Co. (SSNLF) dropped as much as 10%, dragging down the broader MSCI Asia Pacific equity gauge by more than 3%. The steep drop in KOSPI 200 futures forced the Korea Exchange to activate a five-minute "sidecar" trading curb to temporarily suspend program sell orders, marking the index’s 22nd such halt this year.

Elsewhere in the region, Japan’s Nikkei 225 dropped 4.38% to a two-month low around 62,090, while the broader Topix index lost 2.3% to stand at 3,973. Key tech and finance names, including Kioxia Holdings, SoftBank Group (SFTBY), Advantest (ATEYY), and major banking stocks, all posted significant losses. China’s SSE Composite also closed lower, falling 0.83% to around 3,830.

Bucking the regional slump, Hong Kong’s Hang Seng Index rose 0.58% to around 25,350. Robust capital inflows, strong IPO momentum, and sustained investor enthusiasm for local tech and AI shares allowed Hong Kong to offset the global semiconductor sell-off and extend its recent market rally.