South Korea’s Kospi stock exchange fell 5% on July 20, dragged lower by an ongoing selloff in shares of leading chipmakers SK Hynix (SKHY) and Samsung (SSNLF).
In Asian trading, the Kospi, which until now had benefited from the artificial intelligence (A.I.) frenzy, dropped 5% to 6,516.27.
The exchange was dragged lower by its two most valuable stocks. Shares of Samsung fell 4.7% while shares of memory chip maker SK Hynix declined 4.5% on the day.
Elsewhere in Asia, Taiwan’s Taiex exchange slipped 0.5% as its leading chipmaker, Taiwan Semiconductor Manufacturing Co. (TSM), edged 1% higher after falling 7% on July 17.
Hong Kong’s Hang Seng bourse rose 1.7% to 24,984.24, while the Shanghai Composite index in mainland China edged 0.1% lower to 3,761.40.
Japan’s stock market was closed for a national holiday.
Markets in Asia have been volatile since the start of July as the A.I. trade unwinds around the world and stocks of chipmakers selloff as investors rotate capital into other securities.
In the U.S., chipmakers such as Nvidia (NVDA), Advanced Micro Devices (AMD), and Intel (INTC) have also pulled back in recent weeks after bull runs in the year’s first half.
The decline in the stock of SK Hynix comes after it completed a dual listing in New York early in July.
Since its U.S. initial public offering (IPO) on July 10, SKHY stock has declined 8%.
