EL7.AI
StocksMediumUpdated•Originally published 14 September 2026•Updated 14 September 2026•
2 min read

KOSPI’s 3.1% Drop Leads Asian Tech Selloff Ahead of Fed, BOJ Decisions

Key Facts

1The KOSPI fell 3.1%, while the Nikkei 225 declined 1.1%.
2SK Hynix fell 4.3% and Samsung Electronics declined 2.5%.
3The Federal Reserve meets on September 15-16, 2026, and the Bank of Japan on September 17-18, 2026.
4Japan’s real GDP grew 0.4% quarter on quarter in the second quarter of 2026, equivalent to a 1.4% annualized rate.

Asian technology shares fell sharply on Monday, led by a 3.1% drop in South Korea’s KOSPI, while Japan’s Nikkei 225 declined 1.1%. Investors reduced exposure to AI-linked chipmakers as bond yields rose and concerns resurfaced about the sustainability of the rally.

Losses were concentrated among Korean semiconductor companies: SK Hynix fell 4.3%, Samsung Electronics declined 2.5% and LG Innotek lost 3.1%. In Japan, Kioxia dropped 7.1%, Murata Manufacturing fell 3.6% and TDK slipped 0.1%, while Sony bucked the trend with a 3.1% gain.

The pressure extended to U.S. futures at the time of the report, with Nasdaq 100 futures down 1.2% compared with a 0.4% decline in S&P 500 futures. U.S. Treasury yields approached 5%, while markets priced an 86% probability of a 25-basis-point Federal Reserve rate increase.

Higher yields tend to weigh more heavily on richly valued growth companies because a greater share of their valuation depends on earnings expected in later years. As the discount rate applied to those cash flows rises, their present value falls, explaining technology shares’ sensitivity to bond and interest-rate expectations.

The Federal Reserve is scheduled to meet on September 15-16, 2026, while the Bank of Japan will meet on September 17-18, 2026. The official calendars confirm both meetings but do not predetermine the decisions policymakers will make.

In the economic backdrop, Japan’s second official estimate showed real GDP expanding 0.4% quarter on quarter in the second quarter of 2026, equivalent to a 1.4% annualized rate. The data were released on September 8, 2026, not September 7 as stated in the original copy.

Investors will next focus on the two policy decisions, movements in bond yields and the yen, and whether losses remain concentrated in richly valued chipmakers or spread to the broader market. The meeting outcomes remain unknown, so confirmed dates should be distinguished from forecasts about the direction of policy.