Samsung Plummets 10%, Stocks Fall on Chip Selloff – Asia Market Wrap
Asian equities declined as renewed selling in technology stocks intensified concerns that the AI-driven rally has run ahead of fundamentals. The MSCI Asia Pacific Index fell 2%, led by sharp losses in semiconductor shares.
Samsung dropped 10% despite reporting a 19-fold increase in profit, while SK Hynix also fell 10% after launching the marketing process for its US listing. The selloff dragged South Korea’s Kospi down 8%, triggering a temporary trading halt.
US equity futures pointed lower, with Nasdaq 100 contracts falling 1.1%, suggesting Monday’s rebound in technology stocks was fading. European equities were also set to open lower.
Brent crude rose 0.7% to around $72.50/bbl after a laden LNG carrier was struck by a projectile near the Omani coast while exiting the Strait of Hormuz, raising fresh concerns over regional security despite the late-June peace agreement. Treasuries weakened modestly, with the 10Y yield rising 1 bps to 4.48%.
The Yen strengthened slightly to around 161.81 per Dollar, although positioning data showed hedge funds turned the most bearish on the Japanese currency since 2007. Gold declined for a second consecutive session to around $4,130/oz, while the Dollar was little changed.
