Asian tech stocks fall, SK Hynix slides 9.7% after Wall Street tech pullback

Asian technology stocks fell Thursday, tracking U.S. peers that pulled back overnight and highlighting the sharp swings now moving through tech markets around the world.

In Japan, SoftBank Group lost 4.36%, Tokyo Electron dropped more than 5%, Advantest slipped 2.14% and memory chipmaker Kioxia declined 8.84%. In South Korea, SK Hynix fell 9.71%, Samsung Electronics slid 6.13% and Seoul Semiconductor lost 4.27%. Taiwan's TSMC, the world's largest contract chip manufacturer, traded 1.46% lower.

The declines add to a turbulent stretch for tech stocks, with South Korea's semiconductor-heavy market recently alternating between steep losses and record gains. Despite the volatility, analysts remain optimistic about the sector. J.P. Morgan said in a Wednesday note that the Asian tech sell-off had not derailed the AI investment cycle, and it does not expect hyperscalers to cut back on spending. "Stepping away from the share price moves, we do not see any fundamental indicators that signal meaningful weakness in the next 6-12 months," the bank said.

S&P Global, in a report dated Aug. 5, said global growth is being driven by AI and defense spending and that a growing source of momentum is coming from the technology sector. It also noted that the global purchasing managers' index for tech equipment output rose in July at the fastest rate since May 2021, and that technology recorded its strongest growth in ten months alongside rising demand for software and related IT services. The latest drop follows a strong session Wednesday, when SoftBank soared more than 13%.

Source: CNBC