SK Hynix, Samsung fall as Asian tech sell-off deepens and crude oil extends gains
Sector rout sends the broader MSCI Asia Pacific equities gauge to its lowest close since late July
Published Fri, Oct 23, 2026 · 08:57 AM — Updated Fri, Oct 23, 2026 · 02:12 PM
THE global rout in technology stocks deepened as investors rotated out of the hottest trade of 2026 and sought safety in Treasuries and currencies such as the yen. Adding to the pressure, crude oil extended its gains.
South Korea’s Kospi Index – a bellwether for the artificial intelligence trade – fell 1.5 per cent, putting it on course for its worst close since April.
Samsung Electronics, SoftBank and other tech-related stocks retreated, sending the broader MSCI’s Asia Pacific equities gauge to its lowest close since late July.
Among the main moves in markets, S&P 500 futures were little changed as at 12.28 pm Tokyo time. Japan’s Topix fell 1.8 per cent, Australia’s S&P/ASX 200 fell 0.2 per cent, Hong Kong’s Hang Seng rose 0.5 per cent and the Shanghai Composite fell 1.1 per cent.
Sentiment appeared to steady as futures for the Nasdaq 100 Index edged up 0.1 per cent after fluctuating between gains and losses earlier.
The rout in the AI trade drove investors towards the safety of bonds. Treasuries held the previous session’s gains after staging their biggest rally in more than two years.
The benchmark 10-year yield, which fell 17 basis points on Thursday (Oct 22), traded at 4.96 per cent. Government debt in Japan and Australia advanced.
While the yen, historically a haven asset in times of crisis, was little changed on Friday at about 156.90 per US dollar, the currency gained in each of the past three days.
Little relief came in the energy markets after global crude oil benchmark Brent rose 0.4 per cent to US$113.65 a barrel, extending a 4 per cent jump in the previous session. Oil rallied on Thursday as deadly attacks in Saudi Arabia heightened concerns over supplies.
Technology stocks that powered a four-year bull run in US equities bore the brunt of the selling as earnings from megacap companies added to concerns their rebound since late March had gone too far, too quickly.
The group faces fresh tests next week with results from Microsoft, Amazon and Alphabet landing, alongside the US Federal Reserve’s policy decision.
“The equity market is increasingly pricing in the risk that the AI boom or bubble is coming to an end,” said Tomoichiro Kubota, chief market analyst at Matsui Securities.
“It may be that the AI bubble has started to burst. There had already been concerns about how AI companies would fund their investments, and falling share prices could make it even harder to raise capital going forward.”
The shift out of tech stocks is proving to be a boon for defensive sectors, with utilities and healthcare shares gaining in the US. The S&P 500 Consumer Staples Index jumped 3.1 per cent on Thursday to a record and put it on course for the best month since 1998.
The Nasdaq 100 Index is on pace for its second consecutive week of losses – the first back-to-back weekly decline since July.
The Philadelphia Semiconductor Index is set for its third straight weekly decline, the longest losing streak since November 2025.
Some investors see the declines as an opportunity to buy.
“Demand still massively exceeds supply,” Mark Matthews, the head of Asia research at Julius Baer, said on Bloomberg TV. “So when you have these big corrections like the one we saw over the last few days, particularly overnight, in semiconductor stocks, I think it is a good opportunity to buy them.”
Meanwhile, spreads on US dollar bonds of higher-rated Asian companies widened to their highest since last July, moving in tandem with credit markets more broadly as the rout in AI stocks and rising geopolitical tensions drove investors towards safer assets.
In other corners of the market, gold dipped to about US$4,015 an ounce, while silver lost 1.2 per cent.
In Japan, government bond yields fell across the curve on Friday. The nation’s benchmark 10-year yield fell as much as 11 basis points to 2.76 per cent, while the 20-year yield fell six basis points.
Treasuries surged across the curve on Thursday as the deepening rout in AI-related shares, turmoil in French markets and renewed Middle East tensions fuelled haven buying.
The rally pushed the 10-year yield below 5 per cent for the first time in a month, with buying in Treasury futures accelerating as traders unwound bearish positions.
Concerns about the sustainability of AI investment and its eventual payoff have knocked technology shares from recent highs and are beginning to weigh on the broader economic outlook. Traders also pared expectations for another Fed interest rate increase in 2026.
“Normally, I would expect things to settle down once we get through next week’s earnings,” said Hitoshi Asaoka, a chief strategist at Asset Management One.
“But this time we also have the US midterm elections coming afterward, so I think it could take longer for the market to stabilise. I also think we’re seeing risk reduction ahead of that event.” BLOOMBERG
