(Updates throughout with latest regional market moves; refreshes South Korea losses and trading curb, updates SoftBank after reversing earlier declines, and revises Thailand’s performance)
Investing.com– Asian stocks tumbled on Friday after South Korea’s benchmark index briefly triggered a circuit breaker for the second time this week, as investors dumped technology shares following Apple’s warning of higher AI-related hardware costs, extending a sharp reversal in chipmakers across the region.
The regional weakness tracked a softer lead from Wall Street, where the failed to hold early gains fueled by Micron Technology Inc’s () upbeat earnings after Apple slumped more than 6%. fell about 1.2%, while Futures futures slipped 0.6% as investors continued to trim exposure to technology shares heading into quarter-end.
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South Korea, Japan lead regional selloff as chip rally reverses
South Korea’s KOSPI plunged more than 8% on Friday, triggering a 20-minute circuit breaker for the second time this week as investors fled technology shares after Apple’s price hikes and reports of a potential delay to ’s IPO rattled AI sentiment. The halt marked the fifth trading curb imposed by the Korea Exchange this year and the third this week, underscoring the severity of the selloff.
The KOSPI was on track for a weekly loss of nearly 10%, as investors accelerated profit-taking in chipmakers following Thursday’s AI-fueled rally. Samsung Electronics Co Ltd (), down 7.4%, and SK Hynix Inc (), which traded lower by 8.7% were among the benchmark’s biggest drags. Local media reported both companies are preparing significant increases in semiconductor capital spending, adding to concerns over elevated AI-related investment costs.
The retreat came despite Micron’s blockbuster results earlier this week, with sentiment souring after Apple warned of rising memory and storage costs by increasing prices across Macs and iPads, reviving concerns over how higher AI infrastructure costs could affect broader technology demand.
South Korea’s heavyweight chipmakers also retreated. Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) fell over %, each, after local media reported both companies are preparing substantial long-term investment increases in semiconductor capacity, prompting investors to lock in gains following Thursday’s surge. The pair ranked among the biggest drags on Asian benchmarks after their outsized rally a day earlier.
Japan’s also fell more than 4%, with heavyweight technology stocks extending losses after Thursday’s failed rebound. SoftBank Corp () reversed earlier losses to trade about 0.8% higher, trimming a sharp intraday decline sparked by reports that OpenAI may delay a potential initial public offering until 2027.
Japan’s June also underscored persistent price pressures, with rising to 1.6% year-on-year and the closely watched core-core measure accelerating to 1.1% from 0.7%, keeping expectations alive for more Bank of Japan rate hikes.
China weakens as Asia caps volatile week
Losses spread across the region, with Hong Kong’s dropping 1.6%, China’s sliding 2.4% and the falling 1.6%, while the broader lost nearly 2.9%.
Australia’s was little changed. Singapore’s fell 1%, while Indonesia’s slipped 2.7%. Thailand’s SET Index reversed earlier gains to fall 1.1%.
Indian markets were closed for the Muharram holiday.
Investors also continued to digest signs of easing Fed tightening expectations after Thursday’s mixed reading, while Qualcomm’s upbeat long-term AI revenue forecast offered some support to sentiment even as technology shares remained highly volatile. also traded below $75 a barrel, indicating Middle East supply concerns continued to ease.
Reporting by Roushni Nair
