Global Economy
Asian Markets Tumble as Tech Shares Plunge – Seoul Slides 10% and Tokyo Down 3.5%
Asian equity markets suffered a sharp decline on Tuesday after major U.S. tech names posted sizable losses on Wall Street. The sell‑off amplified concerns over lofty AI valuations and short‑term profitability, dragging South Korea’s KOSPI down almost 10% and Japan’s Nikkei lower by 3.5%. The slide was compounded by a weakening yen and falling oil prices amid easing geopolitical tensions between Washington and Tehran.
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Asian equity markets see steep decline
Asian bourses slumped on Tuesday after Wall Street tech giants posted sizable losses, reigniting concerns over lofty AI valuations and near‑term profitability.
Key index moves
- KOSPI (South Korea) fell 9.99% to 8,203 points, led by a more than 12% drop in semiconductor leaders SK Hynix and Samsung Electronics.
- Nikkei 225 (Japan) slipped 3.54% to 69,388 points, with memory‑chip maker Kioxia plunging 15.09%.
Tech‑stock trigger
U.S. tech heavyweights such as Google (-5%), Microsoft (-3.2%) and SpaceX (-16.4%) fell on Tuesday, prompting profit‑taking and raising doubts about massive AI‑related capital outlays.
Currency and commodities
- Japanese yen hovered around ¥161.67 per dollar, near its lowest level since 1986, fuelling speculation of possible intervention.
- Oil prices continued to retreat, with WTI down 1.54% to $72.73 per barrel and Brent easing 1.66% to $76.63.
Outlook
Market pressure is compounded by improving diplomatic talks between Washington and Tehran, including a suspension of U.S. sanctions on Iranian crude, which supports the bearish trend.