Technology stocks across major Asian markets declined on Thursday, August 6, following a downturn in the U.S. technology sector during the previous trading session. Companies in South Korea, Japan, and Taiwan recorded notable decreases in share prices, with semiconductor and electronics firms experiencing significant drops.
In South Korea, SK Hynix shares fell 9.71%, and Samsung Electronics declined by 6.13%. Seoul Semiconductor also saw its stock price decrease by 4.27%.
Japanese markets reflected a similar trend. SoftBank Group dropped 4.36%, while chip-related companies also saw declines. Tokyo Electron was down over 5%, and Advantest lost 2.14%. Memory chip manufacturer Kioxia recorded an 8.84% fall. In Taiwan, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip manufacturer, experienced a 1.46% decline in its share price.
The downward movement on Thursday came after a session of gains for many of the same stocks. On Wednesday, some Asian technology stocks had reported increases, with SoftBank rising by more than 13%.
Market analysis from financial institutions offered context on the broader technology sector. In a note published on Wednesday, J.P. Morgan stated that recent declines in Asian tech stocks had not altered the fundamental investment cycle in artificial intelligence. The bank reported it does not anticipate major cloud service providers, known as hyperscalers, to reduce their investments in the sector. “Stepping away from the share price moves, we do not see any fundamental indicators that signal meaningful weakness in the next 6-12 months,” the note read.
Separately, a report from S&P Global dated August 5 identified technology as a source of momentum for global growth. The report noted that the global purchasing managers’ index for tech equipment output increased in July at its fastest rate since May 2021. “Alongside rising demand for software and related IT services, technology reported the fastest growth for ten months,” S&P Global stated.
