Asian stock markets witnessed an intense selling wave of shares of electronic chip companies, which led to a sharp decline in stock market indices in Japan and South Korea, under the pressure of investors’ anxiety and fear of the lack of financial return compared to the huge expenditures directed to the artificial intelligence sector.
The South Korean KOSPI index fell by 14%, causing trading to be temporarily halted following a sharp decline in the shares of the industrial giants “Samsung Electronics” and “SK Hynix”, which recorded a monthly decline of about 41% and 34%, respectively.
In Japan, the Nikkei index fell to its lowest levels in two months, under pressure from losses in shares of chip equipment and testing companies such as Advantest, Tokyo Electron, and Kioxia. These declines come amid a state of cautious anticipation by the markets for the business results of major global technology companies that are scheduled to be announced this week.
