Japanese and South Korean stock markets lost roughly $363 billion in combined market value on July 8 as a tech-led selloff hit the region. Japan's Nikkei 225 closed down 2.11% at 66,819.05, while South Korea's KOSPI plunged 5.35% to 7,246.79, triggering a temporary trading curb during the session. The selloff followed an overnight decline in U.S. technology stocks and the Philadelphia Semiconductor Index, as investors continued cutting exposure to the overheated AI trade. Geopolitical tensions, including U.S. strikes on Iran and the removal of oil-sanction waivers, pushed oil prices higher and deepened risk-off sentiment across the region.
Market Performance on July 8
By the end of trading on July 8, the Nikkei had fallen to 66,819.05, while the broader Topix dropped 1.4% to 4,006.43. The move wiped out around 19.4 trillion yen, or approximately $120 billion, from the Japanese market. South Korea's KOSPI closed at 7,246.79, its lowest level since May 20, erasing about 366 trillion won, or roughly $243 billion, in market value.
Chipmaker Stocks Led Decline
Chipmakers took the heaviest blow during the session. Samsung Electronics dropped 6.25% to 277,500 won, its lowest level in more than a month, while SK Hynix fell 5.68%, barely holding the 2 million won mark. The selloff marked the second major wave of pressure in two days. On July 7, a post-earnings selloff in Samsung helped trigger historic volatility on the Korean stock market, with the KOSPI losing more than 3.5%. The Korean benchmark deepened its decline on July 8, falling 5.35% to 7,246.79.
U.S. Tech Selloff and Geopolitical Tensions Added Pressure
Another major backdrop was the overnight decline in U.S. technology stocks and the Philadelphia Semiconductor Index. Investors continued cutting exposure to the overheated AI trade, which had helped drive Asian markets sharply higher earlier in the year. Geopolitical tensions also added pressure. U.S. strikes on Iran and the removal of oil-sanction waivers pushed oil prices higher, increasing volatility and deepening risk-off sentiment across the region.
Midday Recovery Attempt Appeared During Session
Despite the sharp decline, some signs of resilience appeared during the session. Around midday, markets showed a V-shaped recovery attempt as investors bought beaten-down AI hardware stocks. Foreign investors remained cautious toward Korean equities. However, several stocks held up better than the broader market. SoftBank fell only 0.14%, while Japan's Kioxia lost a modest 0.73%. SK Hynix's planned U.S. listing is scheduled for Friday.
FAQ
What happened to Japanese and Korean stocks on July 8?
Japanese and South Korean stock markets lost roughly $363 billion in combined market value on July 8. Japan's Nikkei 225 closed down 2.11% at 66,819.05, while South Korea's KOSPI plunged 5.35% to 7,246.79, triggering a temporary trading curb during the session.
Why did chipmaker stocks fall on July 8?
Chipmakers took the heaviest blow as investors continued cutting exposure to the overheated AI trade following an overnight decline in U.S. technology stocks and the Philadelphia Semiconductor Index. Samsung Electronics dropped 6.25% to 277,500 won, while SK Hynix fell 5.68%.
What geopolitical factors contributed to the selloff?
U.S. strikes on Iran and the removal of oil-sanction waivers pushed oil prices higher, increasing volatility and deepening risk-off sentiment across the region on July 8.
