Panic in software stocks spreads to Asian stock markets, with South Korean stocks falling over 3%, silver plummeting 16%, and gold dropping below $4,800
The Asia-Pacific market generally declined, continuing the sell-off trend of technology stocks on Wall Street. The South Korean Kospi index fell over 3%, with Samsung Electronics and SK Hynix both dropping more than 4%. Spot silver fell over 16% during the day, breaking below the $74 mark. Spot gold fell below $4,800 during the session, down more than 3%
On Thursday, the Asia-Pacific markets generally fell, continuing the sell-off of technology stocks on Wall Street, with chip stocks being the hardest hit. The South Korean Kospi index led the major markets down, with Samsung Electronics and SK Hynix both dropping over 4%. Precious metals plummeted, with spot silver falling more than 15% during the day.
Overnight, American chip manufacturer AMD's first-quarter earnings forecast fell short of some analysts' expectations, causing its stock price to plummet 17%, triggering a chain reaction in Asian tech stocks. Broadcom and Micron Technology fell 3.8% and 9.5%, respectively.
Nick Twidale, Chief Market Analyst at AT Global Markets, stated that the Asian markets are being impacted by the overnight sell-off on Wall Street, and it is uncertain whether we can say that tech stocks have peaked, but there is still room for further market correction, which is a traditional operation of "selling tech stocks and shifting to defensive sectors."
The South Korean market was under the most pressure, with the Kospi index falling 3.68%. Samsung Electronics and SK Hynix dropped 4.14% and 4%, respectively.
The Nikkei 225 index fell slightly by 0.73% to 53,898.35 points, but the broader Topix index rose 0.23%, reaching a new historical high, making it the only major index in the Asia-Pacific region to close higher.
SoftBank Group saw a significant drop of 6.39% during the session, as its chip design company Arm's third-quarter authorized sales fell short of expectations.
Bitcoin weakened in tandem with the tech stock sell-off, dropping over 3%, and at one point fell below the $73,000 mark before further declining.
Spot silver fell more than 16% during the day, dropping below the $74 mark. Spot gold fell below $4,800 during the session, down over 3%.
In the domestic market, lithium carbonate futures main contracts hit the daily limit down, with Shanghai silver main contracts falling over 7% and platinum main contracts dropping over 8%.
Guotou Silver LOF has been suspended for the fourth consecutive day, closing at 3.443 yuan, with the latest premium rate at 37.12%.
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