Asia Stocks Slump as AI Jitters Hammer Korean Chipmakers Ahead of Tech Earnings

3-line summary

• Asian equities fell broadly, with South Korea's Kospi down 2.5% as SK Hynix dropped 3.5%, Samsung Electronics fell 1.8%, and LG Innotek lost 2.4%; Japan's Nikkei slipped 0.5% and Hong Kong's Hang Seng fell 1%, as renewed AI-related jitters hit chipmakers even after the Philadelphia Semiconductor Index (SOX) snapped an eight-session losing streak-its longest since 2008-with a 1.6% gain, and the Nasdaq 100 rose 1.2% in the prior US session.
• China's central bank, the PBOC, held its benchmark loan prime rates unchanged for a 17th consecutive month while reportedly weighing a shift in its overnight-rate policy framework; separately, Indonesia's Jakarta Composite rebounded 2.3% after the prior week's historic selloff, and National Australia Bank's restructuring announcement added to regional headlines.
• Markets are also digesting South Korean AI-infrastructure firm Elice's sharp IPO-debut decline, awaiting a busy earnings week led by Netflix, Tesla, Meta, and IBM alongside SpaceX-related news, watching Fed governor Kevin Warsh's recent comments, and weighing oil-price uncertainty tied to potential US sanctions waivers.

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