{
  "id": 1863591,
  "title": "Asian stocks slump as chip selloff deepens; KOSPI plunges 5%",
  "url": "https://urgent.news/2026/08/19/asian-stocks-slump-as-chip-selloff-deepens-kospi-plunges-5",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-19T04:04:11.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/asian-stocks-slump-as-chip-selloff-deepens-kospi-plunges-5-4866415"
  },
  "original_language": "en",
  "account": "Asian equities tumbled on Wednesday as a fresh drop in the semiconductor sector weighed on markets, alongside elevated interest rates and geopolitical concerns. The MSCI AC Asia Pacific index slipped about 2%, while the Nasdaq 100 futures slid 0.2% and S&P 500 futures dropped 0.1%. The Philadelphia Semiconductor Index saw its steepest decline in nearly a year, falling 5.6%. Tech giants Micron and Nvidia suffered sharp losses, with Micron down 7% and Nvidia falling 2.3%. The pressure extended beyond chips, as U.S. long-term Treasury yields neared multi-decade highs, hovering near 5.34%, the highest since 2007. This increased the cost of borrowing, making richly-valued tech stocks less appealing. Market participants will also scrutinize the Federal Reserve's July meeting minutes for clues on the central bank's stance on inflation. The U.S. is expected to sell $16 billion of 20-year Treasuries, with Iran tensions and high oil prices keeping Brent crude above $90 a barrel. In South Korea, the KOSPI index plummeted 5.5% to 6,495.1 points, after falling as much as 6.4% earlier. The index had surged more than 2% on Tuesday, marking its sixth consecutive day of gain. Wednesday's reversal was driven by profit-taking and re-evaluation of AI stocks and the impact of higher rates on semiconductor valuations. SK Hynix and Samsung Electronics both dropped 8.4% and 7.3%, respectively. The KOSPI's trauma led to a \"sidecar\" program trading halt. The index is heavily weighted towards Samsung and SK Hynix, making it particularly vulnerable to semiconductor market fluctuations. While the broader AI narrative remains intact, investors are less willing to pay a premium for growth. A Bank of America survey revealed that 59% of fund managers are hedging AI downside risk by shifting towards value, cyclical, and defensive sectors, up from 30% in July. Meanwhile, almost two-thirds of managers want more proof of AI monetization before increasing exposure. In Japan, the Nikkei 225 fell 2.4%, while the TOPIX declined 2.7%. Chinese stocks also faced pressure, with the Shanghai Composite index dropping 2%. Hong Kong's Hang Seng index remained relatively stable. Baidu saw its shares plunge 12.5%, extending losses after missing revenue estimates due to weak advertising demand. However, Xiaomi gained 6.4% despite reporting a smaller-than-expected second-quarter profit, with strength in its EV and AI businesses. Unitree Robotics, a China-based humanoid-robot company, experienced a remarkable surge, nearly sixfold, after its IPO, which was more than 8,000 times oversubscribed by retail investors. Australia's S&P/ASX 200 fell 0.3%, and Singapore's FTSE Straits Times Index dropped 0.36%. India's Nifty 50 opened 0.3% lower, and Indonesia's Jakarta Stock Exchange Composite Index slipped 0.6%. Australia continues to be a focus after RBA Deputy Governor Andrew Hauser indicated that rates may need to rise further if inflation concerns intensify. The Bank of Indonesia is expected to announce its policy decision later in the day, with a rate hold widely anticipated.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}