Asian Chip Stock Rout Sends Kospi Down Sharply, Crypto Follows
South Korea’s Kospi fell 7.4% to 5,914.35 on October 13, its lowest since late July, as chip shares led a broad Asian decline. Samsung Electronics dropped 7.7% and SK Hynix lost 8.8%, while Japan’s Nikkei 225, Hong Kong’s Hang Seng, and China’s Shanghai Composite also fell. The risk-off mood followed reports about Chinese chipmaker CXMT and coincided with a 0.9% decline in total crypto market value to $2.897 trillion, with the headline citing $815 million in crypto liquidations.
South Korea’s Kospi fell to 5,914.35 after a 7.4% drop, its weakest since late July. Samsung Electronics fell 7.7%, and SK Hynix slid 8.8%. Japan’s Nikkei 225 lost 2.5%, Hong Kong’s Hang Seng 1%, and China’s Shanghai Composite 1.1%. Reports about Chinese chipmaker CXMT added to concerns about competition for established producers.
The index had reached a record above 9,000 in June amid AI-driven gains, underscoring its concentration in chipmakers. Crypto also weakened: total market value slipped 0.9% to $2.897 trillion, Bitcoin traded near $83,995, and $815.47 million in leveraged positions were liquidated, mostly longs.
A sharp Asian chip sell-off could weigh on investor confidence, especially for households and funds exposed to South Korean equities or crypto. Retail traders may face margin losses after leveraged liquidations, while pension and savings accounts tied to regional indexes could see short-term declines. If AI-related volatility persists, firms dependent on chip demand may delay spending or hiring, though market moves alone do not determine broader economic outcomes.