Asia Chip Stocks Plunge as Kospi Drops 10%, China Competition Rises
Semiconductor shares fell sharply across Asia, with South Korea's Kospi sliding 10% amid worries over Chinese DUV tool competition and new Korean ETF regulations.
Asian semiconductor stocks sold off heavily, dragging South Korea's Kospi index down by 10%. The decline was fueled by intensifying competition from Chinese deep ultraviolet (DUV) lithography tools and regulatory changes affecting Korean exchange-traded funds.
Looking ahead, SK Hynix is set to report its second-quarter results tomorrow, a potential catalyst for chip sector sentiment. Meanwhile, Chinese memory maker CXMT saw its shares drop 5% in early post-IPO trading, adding pressure on the wider market.
In the geopolitical backdrop, tensions around Iran appeared contained, with officials indicating a deal remains on the table. Reserve Bank of Australia Governor Bullock struck a non-committal tone on policy, as central bank announcements and big tech earnings continue to pile up this week.
Source: FXStreet Forex News