Key takeaways
- South Korea’s Kospi fell sharply in early Friday trade, dropping below 5,000.
- The decline followed heavy selling in AI and semiconductor stocks on Wall Street overnight.
- Japan’s Nikkei 225 moved into bear market territory after falling more than 20% from its June peak.
- The latest move highlights how quickly global technology weakness can spill into Asian markets.
Asian markets opened under pressure on Friday as a sharp overnight sell-off in the United States spilled into the region. South Korea’s Kospi was hit especially hard, tumbling in early trading and falling below the 5,000 mark.
The move came after a steep decline in artificial intelligence and semiconductor shares on Wall Street, a sector that has been driving much of the recent market momentum. The weakness was broad enough to drag Japan’s Nikkei 225 into bear market territory as well.
What happened in Asian trade
South Korea’s benchmark Kospi dropped about 8.5% in early Friday trading, according to the reports. Another report placed the slide at nearly 9%, showing how severe the opening losses were.
The decline pushed the index below 5,000, a level that underscored the scale of the move. Japan’s Nikkei 225 also fell more than 20% from its June peak, putting it in bear market territory.
Why the sell-off started
The immediate trigger was a sharp decline in AI and semiconductor stocks on Wall Street overnight. Those shares have been central to the broader market rally, so weakness in that part of the market tends to ripple quickly across global exchanges.
Because Asian markets are deeply connected to the technology and chip supply chain, investors reacted fast. South Korea and Japan are especially sensitive when sentiment turns against semiconductors and other growth stocks.
