Asian technology and semiconductor stocks followed their U.S. counterparts lower as renewed concerns over inflated AI valuations and bubble risks resurfaced. In South Korea, SK Hynix plunged nearly 10%, Samsung Electronics dropped 5.2%, Doosan tumbled 9.6%, and Hanmi Semiconductor slid 8.2%. In Japan, Tokyo Electron declined 5.8%, Screen fell 4.9%, Lasertec lost 5.5%, SoftBank Group plummeted 11%, Kioxia plunged 16%, Advantest dropped 10%, and Disco slid 7.4%.
The MSCI Asia Pacific Information Technology Index briefly fell 1.7%, while the broader MSCI Asia Pacific Index dipped 0.7%. South Korea's Kospi Index slumped 4.2%.
Overnight, Nvidia erased earlier gains to close down over 3%, dragging the S&P 500 and Nasdaq 100 indices down 1.6% and 2.4%, respectively. Growing skepticism about the Federal Reserve's ability to cut rates next month also weighed on sentiment, as recent remarks from policymakers signaled caution against premature policy easing.
