AI-stock sell-off hits Asia as KOSPI and Nikkei sink after US inflation data

South Korea and Japan were among the hardest-hit markets in a broad repricing of semiconductor shares.

World News View Editorial Desk · Published 16 October 2026

Published 16 October 2026 (IST); sources checked 15–16 October 2026.

KOSPI and Nikkei react to US inflation

Asian stock markets fell sharply on 15 October as investors reacted to stronger-than-expected US inflation and concerns over the prices of AI-related companies. South Korea’s KOSPI dropped close to 8% during Thursday’s session while Japan’s Nikkei fell roughly 5%, according to market reports.

Why chip valuations face scrutiny

Semiconductor businesses have benefited from spending on data centres and AI hardware, but a high valuation depends on profits arriving quickly enough to justify large investments. If investors expect interest rates to stay high or rise, the future earnings of fast-growing firms may be valued less generously.

Why an intraday plunge is not a long-term forecast

One day’s fall is not proof that demand for AI equipment has collapsed. Market reports also noted continued strong chipmaker results. Investors should keep intraday figures separate from final closing values and avoid interpreting a single move as a guaranteed longer-term trend.

Sources and verification

Read the report and check for later revisions: Primary reporting source

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