Asian stocks diverge as Seoul chip rout sends KOSPI lower

what happened

ShareCast reported that renewed concern over stretched technology valuations and heavy spending on AI infrastructure hit semiconductor shares. South Korea’s Samsung Electronics and SK Hynix were among the stocks weighing on the KOSPI, which lost 3.7% and closed at its weakest level since 11 August. Trading in Seoul resumed after Friday’s public holiday.

The Shanghai Composite slipped 0.4% and the Sensex declined 0.8%. The Hang Seng advanced 0.3%, the S&P/ASX 200 added 0.8% and the Strait Times Index rose 0.3%, while Japan’s Nikkei 225 was shut for a public holiday. Sydney equities were supported by blue-chip miners BHP, Fortescue and South32, which followed commodity prices higher. Taiwan’s TAIEX ended unchanged after recovering from earlier losses as investors awaited TSMC’s latest quarterly results. The chipmaker is expected to post a record profit for a sixth straight quarter, with third-quarter net income forecast at T$746bn, 65% above last year.

Official figures showed India’s inflation rate climbing to 5.5% in September from 4.8% in August. That was the highest reading since October 2024 and exceeded economists’ 5.4% forecast. Oil prices reached a two-week peak: Brent and West Texas Intermediate each gained 0.9% to $105.64 and $92.67 a barrel. Investors weighed Donald Trump’s announcement of an “energy ceasefire” involving Russia and Ukraine against another Houthi assault on a Saudi airport over the weekend.

why it matters

The session underlined differing regional exposure to technology valuations, currency sensitivity, energy costs and semiconductor volatility. TSMC’s results may provide a key test for sentiment across Asian chip shares.

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