South Korea's Kospi index fell more than 7%, dropping below the 6,000 level on 13 October 2026, in one of the sharpest single-session declines recorded for the index. The selloff was driven by heavy selling in semiconductor stocks, compounded by oil price concerns. Remarks by Broadcom's chief executive, who compared many AI investors to casino gamblers, accelerated the retreat from chip-related equities across the region, according to Guardian Business. Broader contagion from a prior US chipmaker selloff also contributed, as reported by Bloomberg Markets and Cnbc TOP.
Regional markets moved sharply lower in tandem. Japan's Nikkei fell 1.8% and Taiwan's exchange lost nearly 2%, with TSMC declining alongside South Korean peers, per Guardian Business. SK Hynix and SoftBank shares also fell as the US-originated semiconductor weakness spread into Asian markets, according to Cnbc TOP. Australian business confidence simultaneously dropped to -13, reflecting the combined pressure of rate hikes and energy shocks on sentiment, as noted by Finnhub.
Samsung Electronics and SK Hynix were at the centre of the Korean market decline, with losses extending as investors responded to concerns about Chinese chip competition — including a reported architectural breakthrough from China's CXMT — alongside AI sector valuation anxieties, per Bloomberg Markets. TSMC, as the region's largest contract chipmaker, also registered material declines tied to the same sectoral pressures. Brent crude and WTI were referenced in connection with energy-cost concerns weighing on the broader regional sentiment, as reported by Finnhub.
No official regulatory or government response to the market decline was reported in the cluster as of 13 October 2026.
Sources: investinglive.com, Guardian Business, Bloomberg Markets, Cnbc TOP