Stories
Global Stocks Plunge as Tech Sell-Off Deepens Across Asian Markets
- •Global shares mostly declined, led by sharp drops in Asia following a tech sell-off triggered by hotter-than-expected US inflation data.
- •South Korea's Kospi index tumbled 7.6 percent, with major losses seen in giants like Samsung Electronics and SK Hynix.
- •Japan's Nikkei 225 dropped 4.9 percent, heavily impacted by declines in tech and chip-related companies such as SoftBank Group and Tokyo Electron.
- •Wall Street suffered losses earlier, with the S&P 500 falling 1.1 percent and the Nasdaq composite dropping 1.9 percent as AI-related stocks retreated.
- •Surging bond yields, inflation worries, and a global energy shock have placed additional downward pressure on markets worldwide.
Key Questions Answered
Global shares and Asian markets declined due to a deepening sell-off of technology stocks following a drop in US stocks caused by hotter-than-expected inflation data. Heavy tech-weighted markets like South Korea and Taiwan faced risks as concerns grew over a potential mismatch between market growth expectations for AI spending and actual chip demand.
South Korea's Kospi index lost 7.6% to 5,554.22, plunging over 16% in the past month from its June all-time high, with Samsung Electronics sliding 9.5% and SK Hynix plunging 11.1%. Japan's Nikkei 225 tumbled 4.9% to 64,425.95, while SoftBank Group lost 9.3% and Tokyo Electron dropped 7.8%.
The US consumer price index rose 3.7% year-on-year in September, worsening inflation worries that were further fueled by a global energy shock from the Iran war and rising US government debt. Meanwhile, Brent crude declined 2% to USD 103.93 per barrel amid uncertainties surrounding global oil supply and Middle East tensions.
