Asian Stocks Slide on Tech Rout as Bonds Rally: Markets Wrap
Broad Asia-Pacific Decline, MSCI Index Posts Fourth Weekly Loss
Korean Chips Lead Declines as KOSPI Breaks Below 5,400
South Korea's KOSPI opened 2.36% lower at 5,403.17 and extended losses to 5,353.48 by 9:40 a.m., down 3.26% from Thursday's close of 5,533.77. Aju Press reported that Meta's AI spending concerns deepened a semiconductor selloff. SK Hynix had earlier scrapped an IPO of its US subsidiary Solidigm after shareholder opposition, adding to chip-sector unease.
China Enters Bear Market as CSI 300 Falls 20% From June Peak
Hong Kong Tech Slumps as Alibaba Posts Steepest Drop in Two Months
Alibaba suffered its steepest drop in two months on Thursday, dragging the Hang Seng Tech Index down 5%, its biggest decline since April 2025. Business Times quoted Lombard Odier strategist Homin Lee saying investor sentiment remains very poor and that without new policy or tech catalysts, a volatile, directionless environment may persist into early 2027. Hang Seng futures rose 0.8% on Friday.
Bonds Rally as Havens Draw Cash
Oil and Bitcoin: Middle East Tensions Lift Crude, Weigh on Crypto
AI Financing Costs and Earnings Season Take Center Stage
Political.org reported investors sharply pared bets on further Federal Reserve rate increases. The next catalysts are earnings season, any new Chinese stimulus and Middle East developments. CoreWeave's 15.5% plunge on October 14, when its own bond yields spiked to about 15% on AI financing fears, underscored that AI infrastructure financing costs have become a tighter constraint than chip shortages. Analysts broadly see AI spending sustainability and funding capacity as the key variables for tech shares.
