SK Hynix, Samsung Electronics fall 7% as Asian equities decline, chip sell-off extends
Technology shares are weaker after a closely-watched US gauge of semiconductor stocks sinks 5%
Technology stocks saw a decline as Asian equities dropped amid an ongoing sell-off in semiconductor shares. The MSCI’s Asia Pacific equities benchmark fell over 1 per cent, with South Korean shares plummeting nearly 6 per cent on Wednesday. Samsung Electronics and SK Hynix, key chip bellwethers, both experienced around 7 per cent declines.
The US semiconductor gauge slipped 5 per cent, prompting the tech sell-off. Among regional markets, the S&P 500 futures fell 0.1 per cent, Hang Seng futures dropped 0.3 per cent, and Japan’s Topix declined 1.6 per cent. Australia's S&P/ASX 200 index also saw a 0.5 per cent decrease. Nasdaq 100 contracts edged lower after the index fell 1.7 per cent.
Treasury yields edged higher, with 10-year yields remaining near multi-decade highs due to concerns of persistent inflation and government spending. Brent crude prices surged 0.3 per cent to US$91.30 a barrel, amid a deadlock between the US and Iran over control of the Strait of Hormuz. Gold prices also saw a slight drop. Elevated bond yields and rising oil prices contributed to a risk-averse market sentiment.
Analysts noted that higher yields will increase borrowing costs for technology companies, potentially impacting capital spending and the growth of AI infrastructure firms.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
