South Korea's Kospi Index Drops Over 6% Amid Chip Selloff and Oil Price Concerns

Asian stock markets experienced significant declines on October 13, 2026, primarily driven by a selloff in technology shares. South Korea's Kospi index fell more than 6%, dropping below the 6,000 mark for the first time since July 31. The index, which is heavily weighted toward semiconductor companies, was particularly vulnerable to shifts in investor sentiment regarding the artificial intelligence sector. Japan's Nikkei index also declined by 2.6%, while various Chinese markets, including the tech-focused ChiNext, saw losses of 3%.

The downturn followed a weak performance on Wall Street, where the Nasdaq index fell by 0.5% due to pressure on chip stocks. Investors are increasingly concerned about the sustainability of the AI-driven market rally, compounded by intensifying competition between the United States and China. Reports of speculative investor behavior and a scramble for computing resources have further fueled these anxieties.

Oil prices have also emerged as a significant factor impacting market sentiment, with Brent crude trading near a two-week high amid geopolitical tensions, including attacks on Saudi energy facilities and uncertainties surrounding Russian diesel supply. Analysts noted that rising oil prices are contributing to inflationary pressures, which in turn are affecting bond yields and diminishing the appeal of high-growth stocks. The U.S. dollar remained strong, driven by safe-haven demand, adding additional challenges for Asian equities.

© 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: KLEA News