FX.co ★ South Korean Stocks Lead Asia Lower

South Korea’s KOSPI Composite Index slumped 8% on Wednesday, deepening the previous session’s nearly 11% decline and hitting its lowest level since early April. The downturn was driven by an intensified selloff in semiconductor stocks amid growing worries about the sustainability of artificial intelligence–related spending and stretched valuations.

Among major movers, SK Hynix dropped nearly 13% after the chipmaker reported another record quarterly profit that nevertheless fell short of analyst forecasts. Technology-heavy equity benchmarks in Japan and China also traded lower, even as markets in Australia and Hong Kong bucked the trend and outperformed the broader region.

On the geopolitical front, the US military said it had successfully intercepted what it described as a surprise Iranian attack aimed at US forces stationed across the Middle East. The incident reignited regional tensions and drove oil prices higher.