The Asian markets have gotten off to a forgettable start to the day's trade today (Thursday, October 15), with all the key indices crumbling under the pressure of the global chip sell-off rout.
A major selloff in global equity markets spilt into the Asia-Pacific region as semiconductor stocks fell after unexpectedly high United States inflation data reinforced market expectations that the Federal Reserve will raise interest rates further. Treasury securities appreciated on safe-haven buying, a Bloomberg report underscored.
South Korea's Kospi Index, recognised as a key indicator for artificial intelligence sector investments, experienced the most significant regional deterioration with an 8% decline as major chipmakers Samsung Electronics Co. and SK Hynix Inc. each experienced losses exceeding 8%. The Japanese benchmark, the Nikkei 225, slumped over 4% intraday, and the TOPIX slipped 2%.
Meanwhile, the GIFT Nifty at Dalal Street hinted at a negative start to the Indian markets ahead of the day's trade.
The MSCI Inc. Asia Pacific equities index declined by 2.2%, positioning itself toward its lowest closing since July.
Technology sector sentiment remained subdued, with Nasdaq 100 Index futures contracting by 0.8%. The Asian market decline followed a substantial downturn on Wall Street that pushed the Russell 2000 Index into correction territory, while a prominent index tracking United States semiconductor equities recorded its most extended consecutive daily decline since May 2025.
The most pronounced United States inflation reading in five months prompted market participants to substantially increase their expectations regarding additional Federal Reserve tightening measures, creating the possibility of supplementary rate increases despite a potential policy pause in October.
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