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Asian Markets Crash: Kospi Plunges Over 6 Percent Amid Heavy AI Sell-Off
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CNBC Awaaz•13-10-2026, 08:46
Asian Markets Crash: Kospi Plunges Over 6 Percent Amid Heavy AI Sell-Off
- •Asian markets faced a sharp drop on Tuesday morning with major indices tumbling up to 6 percent due to heavy selling in AI-related stocks.
- •South Korea's Kospi index plummeted up to 6 percent while Japan's Nikkei 225 declined by about 2 percent.
- •Chip industry leaders SK Hynix and Samsung Electronics saw shares fall by over 7 percent driven by foreign investor withdrawals.
- •Investors are increasingly concerned over massive capital expenditures in AI infrastructure versus actual financial returns and high valuations.
- •Indian stock markets remained resilient with Gift Nifty trading in the green as AI investment scope in India is comparatively limited.
Key Questions Answered
Asian markets experienced a sharp downturn due to heavy selling in shares of artificial intelligence and memory chip companies, as investors grew concerned over massive capital expenditures versus generated returns.
South Korea's Kospi index plunged by more than 6% during trading, driven down by continuous foreign investor sell-offs and heavy losses in key chip stocks like Samsung Electronics and SK Hynix.
Indian stock markets remained stable and showed signs of a positive start because investment and focus on artificial intelligence within Indian markets are within a limited, restricted scope.
