Chip Stock Sell-off Intensifies, Daylight between Japan and South Korea Markets

July 28th - Due to concerns over NVIDIA's major AI supply agreement and intensified market competition, investor sentiment plummeted, causing a sharp decline in the Japanese and South Korean stock markets. The Nikkei 225 index fell as much as 4%, hitting its lowest level since May 22nd; the TOPIX index saw its largest drop of 2.7%. The South Korean KOSPI index plunged by 7.6% at one point, marking a new low since April 20th. Shares of Tokyo Electron, Kioxia, Samsung Electronics, and SK Hynix led the decline in semiconductor and equipment stocks, all dropping by over 9%. Among them, SK Hynix's stock price plummeted by 30% at one point, marking its largest single-day drop in history; Kioxia's stock price fell by 18% at one point, marking its largest drop since November last year.

In a wave of AI-related deals worth over $750 billion, NVIDIA's credit default swap costs surged, leading to a tech stock selloff. Hideyuki Ishiguro, Chief Strategist at Nomura Asset Management, stated that following reports of NVIDIA's significant investment transaction, its credit risk increased, which investors interpreted as a bearish signal. Additionally, Ishiguro pointed out that China's advancements in semiconductor manufacturing equipment pose a threat to Japanese suppliers, eroding Japan's long-held competitive edge in the field. (Golden Finance)