SK Hynix shares plunge 10% as Asian semiconductor stocks track U.S. losses

Asian semiconductor stocks tumbled on Thursday as a selloff in U.S. chipmakers spilled into the region, according to a report by CNBC. The decline was led by South Korean memory giant SK Hynix, whose shares plunged 10% as investors reacted to the negative momentum originating in the United States.

The sharp drop in Asian tech equities occurred against a backdrop of rising U.S. equity markets. On the same day, the Dow Jones Industrial Average gained 0.8%, the S&P 500 rose 0.3%, and the Nasdaq Composite climbed 0.2%. This divergence highlights a specific weakness within the semiconductor sector, even as broader U.S. indices posted modest gains.

Amidst the broader market rise, Nvidia shares surged more than 2% following news that the U.S. approved H200 chip sales to Chinese firms. This positive development for one major chipmaker contrasts with the broader regional selloff, indicating that investor sentiment towards semiconductors remains fragmented and highly sensitive to regulatory and geopolitical developments.

The market movements coincided with the commencement of a two-day summit in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping. The agenda for the diplomatic talks includes trade, artificial intelligence, and the Strait of Hormuz, factors that are likely influencing investor behaviour across global markets.

While the semiconductor sector faced headwinds, other areas of the U.S. market saw activity driven by different fundamentals. Antero Resources Corporation shares rose due to a broad rally in U.S. exploration and production firms, driven by higher oil prices resulting from geopolitical tensions in the Middle East. Meanwhile, AIG shares fell on concerns regarding leadership changes.