Media365
Technology stocks across China, South Korea and Japan have taken a beating as risk-off sentiment sweeps markets, with the escalating US-Iran war sending shock waves through global energy and logistics networks.
Hong Kong and Chinese tech stocks have been affected to a lesser degree than their Korean and Japanese peers because of the different levels of exposure to energy and shipping disruptions caused by the Middle East turmoil, analysts said.
In Seoul, the Kospi index sank over 12 per cent on Wednesday, with bellwether stocks Samsung Electronics and SK Hynix, the nation’s two biggest chip manufacturers, diving 11.7 per cent and 9.6 per cent, respectively. In Tokyo, the Nikkei 225 slumped 3.6 per cent.
In Hong Kong, the Hang Seng Tech Index, which tracks the 30 largest technology companies including Alibaba Group Holding and Tencent Holdings, eased 1 per cent, the lowest level since April. Alibaba owns the South China Morning Post.
Shanghai Stock Exchange’s Star Market 50 index, which includes domestic chip giants Semiconductor Manufacturing International Corporation and Cambricon Technologies, closed 0.5 per cent lower.
“Developed Asia and China are among the markets with large exposure to artificial intelligence,” said Gary Ng, a senior economist at Natixis Corporate and Investment Bank, adding that the markets were “repricing risk across energy and supply chains due to the Iran war”.
