Tech sell-off slams Kospi, Nikkei lower as Asia-Pac equities tumble
A sharp rotation out of AI infrastructure names, triggered by Meta's capex discipline signal, slammed Asia-Pacific equities, with the Kospi falling up to 6% and Nikkei lower.
Asia-Pacific equities suffered a heavy sell-off on Thursday as a sharp rotation out of AI infrastructure names spilled across regional markets. The catalyst traced back to Wall Street, where Meta's abrupt signal of capex discipline, reportedly including plans to sell off computing power, reignited concerns about overbuilt AI capacity and triggered a violent selloff in US tech that carried straight through into Asian trade.
South Korea felt the impact hardest. The KOSPI slumped as much as 6% and tripped a sidecar circuit breaker in early trade, with Samsung Electronics and SK Hynix both losing more than 7% and erasing billions in combined market value as the broad US semiconductor rout hit chipmakers hard. Japan's Nikkei also fell sharply, dragged down by tech and semiconductor-related stocks, while other regional indices followed suit. The sell-off reflects growing investor anxiety over the sustainability of AI-driven spending after Meta's move signaled potential overcapacity in the sector.
For currency traders, the risk-off mood weighed on Asia-Pacific currencies, with the South Korean won and Japanese yen under pressure as investors fled to safe-haven assets. The US dollar strengthened against regional peers amid the flight to safety. Traders should monitor further developments in AI sector sentiment and any policy responses from Asian central banks. Key data releases next week, including US non-farm payrolls, could provide additional direction for risk appetite and currency pairs. For real-time FX quotes, check NowPrice for the latest levels on USD/KRW, USD/JPY, and other major pairs.