Global Market Today: Asian stocks decline in break from US chip rally
Losses were led by a more than 2% drop in South Korea’s Kospi Index — a bellwether for artificial intelligence investments — as chip heavyweight SK Hynix Inc. headed for its lowest close since April. Data-center infrastructure company Elice Inc. plunged as much as 32% in its trading debut in Seoul.
Asian markets reversed a recent trend and declined, diverging from the positive momentum on Wall Street driven by the chip industry. The MSCI Asia Pacific Index experienced a 0.6% decline, with seven of its eleven subgroups falling and three shares outperforming the market. Notably, South Korea's Kospi Index saw a more than 2% drop, marking its lowest close since April, as chipmaker SK Hynix Inc. underperformed.
Data-center infrastructure firm Elice Inc. witnessed a steep 32% plunge during its trading debut in Seoul. This sharp contrast to the tech-heavy rally on Wall Street, where the Philadelphia Semiconductor Index surged 1.6%, marking a break from an eight-day losing streak. As market sentiment waned, Nasdaq 100 futures reversed recent gains and slipped 0.1%.
Meanwhile, oil prices remained relatively stable, with Brent crude hovering around $109.40 a barrel, influenced by supply concerns stemming from the Middle East conflict. Additionally, French bonds slipped following unrest over the weekend, while the concern over AI-driven spending and higher interest rates loomed large over the tech sector, particularly with upcoming earnings from giants like Meta Platforms Inc. and Tesla Inc. The upcoming week is set to test the AI trade, with investors eagerly awaiting results from major technology firms as they determine whether the rally has room to extend further.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
