Why it matters
- Asian stocks fell on Tuesday, Oct. 20, as investors sold chip stocks again on doubts that AI spending can last and on worries about debt-funded AI infrastructure, Trading Economics said. The Kospi dropped 3.73% to 5,552.74 and the Nikkei 225 fell 1.30% to 64,075.42, Yahoo Finance data showed.
- Hong Kong's Hang Seng fell 1.32% to 23,867.74 as it reopened after Monday's holiday. China's central bank left its loan prime rates at record lows, and the CSI 300 fell 0.54%, Trading Economics said.
- Australia's ASX 200 slipped 0.33% after September employment unexpectedly fell, Trading Economics said. Indian markets were closed for a local holiday.
Session recap: what happened in this region's trading day, with sources.
Asian stocks fell on Tuesday, Oct. 20, because investors resumed selling semiconductor shares on doubts about whether heavy AI spending can last and on concerns about debt-funded AI infrastructure and higher borrowing costs, Trading Economics said. South Korea's Kospi dropped 3.73% to 5,552.74 and Japan's Nikkei 225 fell 1.30% to 64,075.42, according to Yahoo Finance data.
| Market | Tuesday close | Change |
|---|---|---|
| Nikkei 225 (Japan) | 64,075.42 | −1.30% |
| Kospi (South Korea) | 5,552.74 | −3.73% |
| Taiex (Taiwan) | 46,292.93 | −1.13% |
| Hang Seng (Hong Kong) | 23,867.74 | −1.32% vs. Fri. |
| Shanghai Composite (China) | 3,735.37 | +0.12% |
| Shenzhen Component (China) | 11,801.29 | −0.14% |
| CSI 300 (China) | 4,152.11 | −0.54%* |
| S&P/ASX 200 (Australia) | 8,816.90** | −0.33% |
| Sensex (India) | Closed | — |
| Nifty 50 (India) | Closed | — |
Source: Yahoo Finance daily chart data. Changes are from Monday, Oct. 19, closes, except the Hang Seng, which is compared with Friday, Oct. 16, because Hong Kong was closed Monday. \Yahoo Finance's daily data did not include a Monday bar for the CSI 300; its change is as reported by Trading Economics. \\Yahoo Finance's last ASX 200 price after the close; its daily bar showed no close. India's Sensex last closed at 73,852.90 and the Nifty 50 at 22,888.95 on Monday.*
Why did Asian stocks fall today?
The sell-off in AI-linked shares resumed, and Japanese tech stocks diverged from Wall Street's overnight rebound, Trading Economics said; see our Americas Monday recap. Rising oil prices added to inflation worries and fears of rate increases, it said in its Taiwan report. Brent crude was at about $110.18 a barrel around 12:45 GMT, up 0.58% from Monday's settlement, Yahoo Finance data showed.
In Tokyo, the Nikkei closed at a one-month low, Trading Economics said. SoftBank Group fell about 6%, Fujikura 6.5%, Tokyo Electron 2.6% and Kioxia 3.4%, and banks also slid, with Mizuho down 5% and Mitsubishi UFJ 3.7%, it reported. The yen was at about 158.07 per dollar around 12:53 GMT, Yahoo Finance data showed.
Why did the Kospi fall so much?
Chipmakers led the drop: Samsung Electronics fell 3.21% and SK hynix 4.70%, Trading Economics said. Hanwha Aerospace sank 11.71%, HD Hyundai Heavy Industries 8.83% and Hyundai Motor 5.29%. Government plans for a large chip-fab investment and SK hynix's supplier financing program offered some support, but infrastructure limits and U.S. trade issues remained obstacles, it said. Separately, AI-infrastructure provider Elice fell 32% after its Seoul initial public offering, Trading Economics reported.
How did Hong Kong and China trade?
The Hang Seng fell 319 points as trading resumed after Monday's public holiday, as tech stocks stayed under pressure over how AI infrastructure would be financed, Trading Economics said. Lenovo fell 10%, Tencent 1.8% and SMIC 2.3%, it said.
The People's Bank of China kept its one-year loan prime rate at 3% and its five-year rate at 3.5%, both record lows, for a 17th straight month, Trading Economics said. Stronger-than-expected third-quarter growth reduced the urgency for more easing, it said. CATL fell 2.97%, while PetroChina rose 1.18%.
How did Taiwan, Australia and India trade?
The Taiex fell to its lowest since Sept. 17, Trading Economics said. TSMC slipped 0.6% and the financial sector fell 2.3%, with Cathay Financial down 3.9%.
The ASX 200 slipped after September employment unexpectedly fell and the jobless rate held at 4.7%, a five-year high, Trading Economics said. BHP fell 1.6% and South32 2.4%, while Cochlear rose 5.2%.
Indian markets were closed Tuesday for a local holiday and resume trading Wednesday, Trading Economics said.
What comes next?
Europe's session is in our Europe Tuesday recap, U.S. futures and earnings are in our day-ahead guide, and live levels are on the markets page. Monday's session is in our Asia Monday recap.
Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.
Sources
- Trading Economics, South Korea stock market (Kospi)
- Trading Economics, Japan stock market (Nikkei 225)
- Trading Economics, Hong Kong stock market (Hang Seng)
- Trading Economics, China stock market
- Trading Economics, Taiwan stock market (Taiex)
- Trading Economics, Australia stock market (ASX 200)
- Trading Economics, India stock market (Sensex)
- Trading Economics, U.S. stock market
- Yahoo Finance, chart data for the Nikkei 225, Kospi, Taiex, Hang Seng, Shanghai Composite, Shenzhen Component, CSI 300, S&P/ASX 200, Sensex, Nifty 50, Brent crude and USD/JPY