WS #15901
Asian markets are suffering a broad-based rout, driven by a combination of US rate fears and specific sectoral deleveraging. South Korea's KOSPI index triggered a circuit breaker after plunging 8%, while Japan's Nikkei is heading for its worst day since March. The sell-off is particularly acute in technology and semiconductor stocks, where investors are rapidly de-risking from high-multiple AI infrastructure plays amid rising capital costs and opaque guidance from key suppliers like TSMC. TSMC reported a third-quarter net profit of NT$763.1 billion, up 68.7% year-over-year, underscoring the immense demand for AI chips. However, the market reaction was muted due to warnings of significant tool price inflation and a refusal to provide forward capex guidance beyond the current year. This ambiguity has fueled concerns about the sustainability of AI infrastructure spending and the cost pressures facing the broader semiconductor supply chain.
Asian Market Collapse
Asian markets are suffering a broad-based rout, driven by a combination of US rate fears and specific sectoral deleveraging. South Korea's KOSPI index triggered a circuit breaker after plunging 8%, while Japan's Nikkei is heading for its worst day since March. The sell-off is particularly acute in technology and semiconductor stocks, where investors are rapidly de-risking from high-multiple AI infrastructure plays amid rising capital costs and opaque guidance from key suppliers like TSMC.
TSMC reported a third-quarter net profit of NT$763.1 billion, up 68.7% year-over-year, underscoring the immense demand for AI chips. However, the market reaction was muted due to warnings of significant tool price inflation and a refusal to provide forward capex guidance beyond the current year. This ambiguity has fueled concerns about the sustainability of AI infrastructure spending and the cost pressures facing the broader semiconductor supply chain.