Business · Markets · 1 hr ago
Asian chip and AI stocks fall sharply ahead of US earnings
Stocks in Japan and South Korea fell sharply during Tuesday morning trading.
The Kospi, South Korea’s main index, dropped more than 6% at one point, while Japan’s Nikkei fell 2.5% by midday.
Chipmakers including Samsung Electronics, SK Hynix and Japan’s Kioxia were among the hardest hit.
Japan and South Korea have major suppliers to the artificial intelligence industry, so their markets are sensitive to moves in US technology stocks.
Investors are concerned that upcoming US company earnings could raise new doubts about the AI boom, and they are also waiting for US inflation data.
South Korea’s exchange briefly paused automated sell orders for five minutes after a trigger designed to slow rapid declines was reached.
Investors are now watching the US earnings and inflation figures for signals about the technology sector and the economy.
Japanese and South Korean stocks fell sharply in early trading as chip and artificial intelligence shares came under pressure.
South Korea’s Kospi fell more than 6% at one point, while Japan’s Nikkei 225 was down 2.5% by midday.
The sell-off followed losses in US semiconductor stocks and worries about high US inflation.
Investors were also cautious ahead of US company earnings, fearing results could raise fresh doubts about the AI boom.
Memory-chip makers were among the hardest hit, including Kioxia, Samsung Electronics and SK Hynix.
- Who
- Investors and companies in Asian stock markets, especially chipmakers in Japan and South Korea.
- What
- Asian stocks fell sharply, led by technology and memory-chip shares.
- When
- Early Tuesday trading; the article was published on 13 October 2026.
- Where
- Japan and South Korea, with weaker trading also reported in Taiwan, Hong Kong and Shanghai.
- Why
- Losses in US semiconductor stocks and concern about US inflation weighed on sentiment, ahead of US earnings.
This story does not have two clearly opposing sides.
Losses in US semiconductor stocks and concerns about US inflation weighed on sentiment in Asia.
South Korea’s exchange triggered a sell-side sidecar, pausing programmatic sell orders for five minutes.
Japan’s Nikkei 225 was down 2.5% at 67,292 points.
- Kospi
- Fell more than 6% at one point
- Nikkei 225
- Down 2.5% to 67,292 points by midday
- Kioxia
- Fell more than 12%
- Samsung Electronics
- Fell more than 8%
- SK Hynix
- Fell more than 9%
Sources
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