Asian Stock Markets Plunge as Technology Shares Tumble in South Korea and Japan
The sell-off in technology stocks across Asian markets has intensified. Higher-than-expected inflation in the United States, rising bond yields and concerns about the artificial intelligence sector have fueled investor selling.
The sell-off in technology stocks across Asian markets has intensified. Higher-than-expected inflation in the United States, rising bond yields and concerns about the artificial intelligence sector have fueled investor selling.
Asian stock markets fell sharply on Thursday, with South Korean and Japanese markets suffering significant losses. South Korea’s benchmark Kospi index dropped 8% to 5,527.12 points. Shares of Samsung Electronics fell 9.7%, while SK Hynix shares declined 11.1%.
Japan’s Nikkei 225 index fell 5% to 64,334.68 points. Shares of SoftBank Group, an investor in OpenAI, dropped 9.6%, while Tokyo Electron lost 7.5% and Kioxia Holdings fell 11.2%.
Other Asian markets also recorded losses. Taiwan’s Taiex index declined 3.4%, Hong Kong’s Hang Seng index fell 1.3%, and the Shanghai Composite Index dropped 2%. Australia’s S&P/ASX 200 index slipped 0.2%.
US Markets Also Record Losses
On Wednesday, major US stock indexes closed lower. The S&P 500 fell 1.1%, the Nasdaq Composite declined 1.9%, and the Dow Jones Industrial Average slipped 0.1%.
Technology stocks also came under selling pressure. Nvidia shares fell 3.2%, Broadcom declined 3.1%, and AMD dropped 5.7%.
In the United States, the Consumer Price Index rose 3.7% year over year in September, up from 3.4% in August. The higher-than-expected inflation reading increased investor concerns about the outlook for financial markets.
Bond Yields and Oil Prices in Focus
Rising US government bond yields have also put pressure on stock markets. The yield on 10-year US Treasury bonds briefly climbed above 5.32% on Wednesday before falling to 5.10%.
Investors are assessing energy supply risks associated with the war in Iran and the growing US national debt as factors that could intensify inflationary pressures.
Meanwhile, oil prices declined despite continued uncertainty surrounding global energy supplies. Brent crude fell 1.5% to $104.47 per barrel, while US benchmark West Texas Intermediate (WTI) crude dropped 1% to $94.17 per barrel.