Japan and South Korea equities plunged as concerns about a major NVIDIA AI
supply agreement and intensifying competition hit chip names. The Nikkei 225
fell up to 4% to its weakest since May 22, TOPIX slid as much as 2.7% and the
KOSPI tumbled as much as 7.6%, its lowest since April 20. Semiconductor and
equipment stocks led losses: Tokyo Electron, Kioxia, Samsung Electronics and SK
Hynix were down more than 9% at intraday lows; SK Hynix briefly plunged ~30%,
its largest single-day drop on record, and Kioxia fell ~18%, its biggest since
November. A wave of AI-related deals worth over $750bn coincided with a spike in
NVIDIA credit-default-swap costs, weighing on tech shares. Nomura Asset
Management strategist Hideyuki Ishiguro said reports of a major NVIDIA
investment transaction raised perceived credit risk and warned Chinese advances
in semiconductor manufacturing equipment threatens Japan’s long-standing supplier
advantage.
