Seoul, Tokyo stocks plunge as Asia suffers fresh tech rout

Seoul, Tokyo stocks plunge as Asia suffers fresh tech rout Estelle.Bronkhorst Tue, 10/13/2026 - 06:00

Chinese-made cars including BYD, BAIC, Jetour, Lynk & Co, and MG are seen in specialised vehicle racks in preparation for loading onto ships for export. CN-STR/AFP

Chinese-made cars including BYD, BAIC, Jetour, Lynk & Co, and MG are seen in specialised vehicle racks in preparation for loading onto ships for export. CN-STR/AFP

HONG KONG - Seoul, Tokyo and Taipei led losses across Asian stock markets on Tuesday as technology firms plunged on fresh worries about the outlook for the AI investment boom, with traders preparing for a crucial earnings season and release of key US data.

The selloff overshadowed a drop in oil prices that came even as Yemen's Houthis step up their attacks on Saudi Arabia, fanning tensions in the Middle East and raising further concerns about supplies.

South Korea's Kospi tanked more than six percent as chip titans SK hynix and Samsung took a beating following reports that China's CXMT had made progress on new technology to boost memory density, which other firms have been working on.

Japanese stocks were also sharply lower, with the Nikkei 225 losing nearly three percent as chipmaker Kioxia tumbled more than 12 percent, while Tokyo Electron and Advantest were off more than six percent.

A 1.8 percent drop in TSMC helped drag Taipei down more than two percent. There were also sizeable losses in Hong Kong, Shanghai, Sydney, Wellington and Manila.

The global tech sector has been slowly recovering from a summer rout that wiped trillions off markets amid concerns about elevated stock valuations and when firms would see returns on their vast investments.

They followed hefty selling in New York, where SanDisk gave up six percent and Micron Technology shed 3.9 percent.

Adding to the unease among traders were comments from Broadcom CEO Hock Tan, who likened the recent investor AI buying frenzy to gambling.

Traders are looking ahead to the release of earnings from leading tech firms this month and next, hoping for an idea about their outlook for the AI sector in light of rising borrowing costs and recent volatility.

Traders are keeping tabs on the Middle East after several powerful explosions rattled Riyadh on Monday night following a series of Houthi attacks on the capital's airport in recent days that have killed at least 18 people.

• AFP