Asian tech stocks plunge on AI worries

On July 16, 2026, most Asian stock markets fell sharply, led by a tech rout in Seoul where the KOSPI dropped over 6% as chipmakers SK Hynix and Samsung Electronics each lost around 10% amid growing fears that the AI rally has peaked. The sell-off spread to Tokyo, Taipei, Shanghai, and other markets, though China — Hong Kong's Hang Seng Index rose over 1% on gains in Chinese chip stocks. The declines occurred despite positive earnings from ASML and TSMC, and a second day of gains on Wall Street. Meanwhile, oil prices rose as US-Iran hostilities continued, though a truce reopened the Strait of Hormuz. The South Korea — Bank of Korea hiked interest rates for the first time since 2023, strengthening the won. The US dollar weakened against major currencies on easing inflation data.