Asian stock markets tumble on chip selloff amid AI concerns

Chip and AI‑related stocks fell sharply across Asia, pulling down major benchmarks. South Korea’s KOSPI dropped 5‑6%, with Samsung and SK Hynix losing over 6% each, while Japan’s Nikkei slid about 1½%. Taiwan’s Taiex fell 1% as TSMC slipped 1.8%, and Hong Kong’s Hang Seng edged up modestly despite a 9% monthly decline. The selloff was triggered by worries that Meta’s plan to sell excess AI compute capacity could signal an oversupply in AI‑driven semiconductor demand, prompting investors to rotate out of chipmakers after a strong quarter.

The market reaction was amplified by a softer U.S. jobs report that reduced expectations of further Federal Reserve rate hikes, supporting a brief rebound in Asian equities and lifting semiconductor shares in South Korea. Oil prices fell to four‑month lows on easing geopolitical tensions, while foreign investors accelerated record outflows from Asian equities. Analysts cautioned that AI demand may grow slower than anticipated, adding volatility to the region’s stock markets.