Kospi Sinks 4.5% as Tech Sell-off Resumes in Asian Markets

Key Facts

Amid shifting investor sentiment regarding the AI sector, Asian markets experienced a broad sell-off that erased previous gains. South Korea's Kospi benchmark dropped 4.5% to approximately 6,299 on Thursday. This decline was driven by intense selling pressure on chipmakers and memory providers as investors unwound positions in a volatile market environment.

Major technology shares were hit hard, with Samsung Electronics falling 5.8% and SK Hynix sliding 9.4%. The contagion spread to Japanese equities as well; per market data, Tokyo Electron lost 5.2%. These collective movements highlight a sharp reversal for AI-linked winners as the market reassesses the near-term outlook for the semiconductor industry.

As of the close on August 6, 2026, Tokyo Electron (8035.T) stood at 55,350 JPY, while Kioxia (285A.T) closed at 49,380 JPY. Traders are now watching whether these instruments can maintain support near their daily lows, especially with a light economic calendar in the immediate days following this sharp technical reversal.