Asian technology stocks are extending a broader global retreat as investors reassess how higher borrowing costs could affect spending on artificial intelligence infrastructure. The pressure is hitting major chipmakers and tech investment groups in South Korea and Japan after hotter-than-expected U.S. inflation data triggered a Wall Street sell-off.
Highlights
SK Hynix drops over 8%, Samsung Electronics falls 7.1%, and SoftBank Group slides 7.9% as Asian chip and tech stocks sell off sharply.
Higher borrowing costs and Federal Reserve rate hike fears intensify worries about AI infrastructure funding, pressuring shares of companies reliant on AI capital spending.
Wall Street weakness drives Asian losses, with the Nasdaq Composite down 1.88% to 26,692.87 and the S&P 500 losing 1.11% to 7,718.94 on Wednesday.
Regional losses follow Wall Street tech weaknessAs reported by CNBC, the sell-off in global technology hardware stocks deepens Thursday, with Asian names tracking losses in the U.S. as concerns over further Federal Reserve rate hikes and the financing burden of AI investment weigh on sentiment.
In South Korea, SK Hynix plunges more than 8%, while Samsung Electronics falls 7.1%. Other chip-related stocks also come under pressure, with LG Innotek down 8.1%, Seoul Semiconductor off 7.7% and Samsung SDI declining 6.8%.
In Japan, SoftBank Group tumbles 7.9%. Semiconductor testing equipment maker Advantest drops 6.9%, chip equipment supplier Tokyo Electron loses 5.4%, and Renesas Electronics declines 5.4%.
AI capital spending faces rate pressureThe declines come as investors grow increasingly concerned that higher borrowing costs could weigh on the massive capital spending needed to build AI infrastructure. That raises pressure on technology companies that have been among the biggest beneficiaries of the AI investment boom.
The regional move follows a bruising Wall Street session on Wednesday, when technology shares lead broader market losses after stronger-than-expected U.S. inflation data fuels concern that the Federal Reserve could raise interest rates further. The Nasdaq Composite falls 1.88% to 26,692.87, the S&P 500 sheds 1.11% to 7,718.94, and the Dow Jones Industrial Average slips 0.09%.
https://tradersunion.com/news/financial-news/show/3816215-asian-chip-tech-stocks-slide-ai-selloff/
Higher borrowing costs and Federal Reserve rate hike fears intensify worries about AI infrastructure funding, pressuring shares of companies reliant on AI capital spending.
Wall Street weakness drives Asian losses, with the Nasdaq Composite down 1.88% to 26,692.87 and the S&P 500 losing 1.11% to 7,718.94 on Wednesday.
Regional losses follow Wall Street tech weaknessAs reported by CNBC, the sell-off in global technology hardware stocks deepens Thursday, with Asian names tracking losses in the U.S. as concerns over further Federal Reserve rate hikes and the financing burden of AI investment weigh on sentiment.
In South Korea, SK Hynix plunges more than 8%, while Samsung Electronics falls 7.1%. Other chip-related stocks also come under pressure, with LG Innotek down 8.1%, Seoul Semiconductor off 7.7% and Samsung SDI declining 6.8%.
In Japan, SoftBank Group tumbles 7.9%. Semiconductor testing equipment maker Advantest drops 6.9%, chip equipment supplier Tokyo Electron loses 5.4%, and Renesas Electronics declines 5.4%.
AI capital spending faces rate pressureThe declines come as investors grow increasingly concerned that higher borrowing costs could weigh on the massive capital spending needed to build AI infrastructure. That raises pressure on technology companies that have been among the biggest beneficiaries of the AI investment boom.
The regional move follows a bruising Wall Street session on Wednesday, when technology shares lead broader market losses after stronger-than-expected U.S. inflation data fuels concern that the Federal Reserve could raise interest rates further. The Nasdaq Composite falls 1.88% to 26,692.87, the S&P 500 sheds 1.11% to 7,718.94, and the Dow Jones Industrial Average slips 0.09%.
https://tradersunion.com/news/financial-news/show/3816215-asian-chip-tech-stocks-slide-ai-selloff/
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