South Korean shares led declines in Asian chip names on Wednesday morning as
rising bond yields intensified concern over heavy tech-sector capital spending.
The KOSPI tumbled as much as 6.8% intraday and an Asian semiconductor index fell
over 2%, mirroring selloffs in US semiconductor and other AI-related stocks.
Bond yields stayed elevated on worries about inflation and rising government
debt, raising the risk that borrowing costs could climb further; uncertainty
from the ongoing Iran conflict added to caution. The CEO of Fibonacci Asset
Management said the long-term AI case remains intact but rising rates and
geopolitical risk are making investors unwilling to pay high premiums, and price
falls also reflected profit-taking after an “exceptionally strong rally.”
