Stock markets across Asia plunged on Friday, dragged down by the region’s biggest tech stocks, as investors continue to debate whether the AI spending boom is almost over or just getting started.
South Korea’s KOSPI fell 8 percent. The benchmark has increasingly become an indicator of investor sentiment towards artificial intelligence due to the enormous influence of the country’s two chip giants, Samsung Electronics and SK Hynix, in dictating the direction of the broader market. Samsung shares fell 9 percent, while SK Hynix plunged 10 percent.
It capped a tough week for South Korean stocks, which had been the world’s best-performing major stock market since early last year. The KOSPI plunged 10 percent on Monday and has since swung between sharp gains and losses, sometimes reversing direction in the same trading session.
In a research note earlier this week, Morgan Stanley said the KOSPI’s strong track record has attracted a wave of retail investors, contributing to increased market liquidity but also increased volatility.
Japan’s Nikkei 225 fell nearly 5 percent, while Taiwan stocks fell 3 percent. Additionally, stock markets in Hong Kong and mainland China fell.
Earlier on Friday, futures linked to the S&P 500 pointed to a modest gain when U.S. markets reopen. But as losses deepened in Asian markets, sentiment soured, sending futures markets down 0.7 percent.
