South Korea led the regional losses, falling 3.7%, while Japan’s fell 1.2%, even as U.S. chip stocks rebounded on Monday.
The decline of 0.8%, that of Hong Kong by 1.1% and that of China by 0.5%. The slightly up 0.1%.
The rose 1.2%, while the gained 0.4% overnight. The stock rose 1.6%, ending an eight-game losing streak, the longest since 2008.
The Nasdaq 100 also began to recover from its worst weekly performance since the April 2025 tariff crisis. In Asian trading, it rose 0.01% and gained 0.2%.
AI concerns weigh on South Korean chipmakers
South Korea’s KOSPI fell 3.8%, with the memory chip heavyweight losing 3.5% and heading for its lowest closing level since April.
fell 1.8%, while Japan’s lost 1.6%, fell 1.5% and declined 0.7%.
fell 0.4%, while sliding 0.7%. increased by 1.1%, while it decreased by 2.4%.
Sentiment was also affected by the market entry of South Korean data center infrastructure company AI. Its shares opened 16% below their IPO price and subsequently fell as much as 33%.
Chinese data and policy changes provide a counterpoint
The People’s Bank of China on Tuesday kept its prime rate on one-year loans at 3.00% and its five-year rate at 3.50%, leaving them unchanged for the 17th consecutive month after stronger-than-expected growth in the third quarter reduced the urgency for short-term monetary easing.
The decision does not provide any new rate relief for borrowers, while the People’s Bank of China is separately considering replacing its seven-day repo rate with the overnight rate as the main policy benchmark to improve monetary policy transmission.
Elsewhere, Australia fell 0.3%, with its shares slumping around 3% after the lender announced restructuring charges and job cuts. New Zealand’s fell 0.2%, while Singapore’s lost 0.2%. Indian stock markets are closed for Dussehra.
Indonesia rebounded 2.3% after plunging more than 11% last week, its biggest one-day decline since January 1998, as investors continued to weigh MSCI’s warning that the country could lose its emerging market status, potentially triggering further foreign capital outflows.
Focus on profits, inflation and geopolitical risks
is expected to report later Tuesday, followed by , and Wednesday.
is also expected to report on Tuesday, while other companies will report this week, including semiconductor equipment makers , , , and .
Meta’s results will be closely watched as investors evaluate the capital spending plans of the largest AI infrastructure companies.
Oil prices resumed their rise on Tuesday as traders weighed risks in the Middle East against uncertainty over a possible easing of US restrictions on Russian energy.
An executive order issued late Friday by U.S. President Donald Trump lifted major Russia-related sanctions and tariffs, including tariffs on Russian products and penalties for purchasing Russian oil and gas.
Trump later said no final decision had been made, while Secretary of State Marco Rubio said the administration could take up to 60 days to assess the economic impact.
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