Nasdaq sell-off batters Asian chip stocks as SK Hynix, Samsung, Softbank, TSMC tumble
Asian technology stocks tumbled Friday, tracking a sharp sell-off on Wall Street overnight that sent the tech-heavy Nasdaq Composite into correction territory.
Singapore's technology stocks experienced a significant decline on Friday, November 6, contributing to a broader market downturn in Asia. The Straits Times Index (STI) dropped by more than 2 percent, closing at 5175.74 points. Meanwhile, Japan's Nikkei Index fell by over 6 percent, reaching 57,239 points shortly after the market opened.
Among Singapore-listed technology stocks, shares of AEM plummeted by 9.3 percent, bringing the price down to S$5.78. UMS Integration also suffered a 8.4 percent decrease, settling at S$1.63. Frencken and CSE Global also saw declines, dropping 7.6 percent to S$1.70 and 6.7 percent to S$0.84, respectively.
The tech-heavy Nasdaq Composite Index suffered a 5.52 percent plunge on Thursday, prompting investors to worry about tighter artificial intelligence regulation following the Democrats' victory in the US midterm elections. The index has dropped more than 10 percent from its record closing high on October 6, indicating that it has entered correction territory.
Investors fear that increased governmental scrutiny of AI infrastructure development, coupled with existing concerns over heavy capital expenditure, stretched valuations, and uncertain returns on AI investments, may dampen market sentiment.
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.
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