Asian Markets Slide as Investors Take Profits in Chip Stocks

Asian markets extended their decline as investors took profits in semiconductor stocks following a strong quarter, while currency and bond markets awaited US jobs data for clues on the direction of interest rates.

Asian equity markets retreated as semiconductor shares led a regional sell-off following a strong second quarter. (Photo: Japan Exchange Group Facebook)

Reuters reported that MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2 percent, while Japan's Nikkei 225 declined 1.4 percent. Hong Kong's Hang Seng Index bucked the regional trend, rising 0.9 percent.

South Korea's KOSPI dropped 4.8 percent, extending Wednesday's 2 percent decline after posting a 68 percent gain during the second quarter, fueled by strong demand for AI-related memory chips.

Among individual stocks, SK Hynix plunged 8.5 percent, while Samsung Electronics fell 7.2 percent.

"The plunge in Asia's semiconductor stocks today is more about a hangover from Wall Street," IG market analyst Fabien Yip said, adding that profit-taking appeared to be the primary driver.

He also noted that reports suggesting Apple was exploring Chinese memory suppliers for devices sold in China could increase competitive pressure on South Korean and Japanese chipmakers.