Asian stocks slide as AI fears hit chip shares before Big Tech earnings
What's next: Microsoft, Meta and the Fed could test whether heavy AI spending still supports lofty market valuations.
Asian stocks fell sharply Wednesday as doubts about the payoff from huge AI spending hammered chipmakers and rattled investors before earnings from Microsoft and Meta and a US Federal Reserve decision. South Korea's KOSPI dropped more than 10% on Tuesday and fell as much as 12.6% before trimming losses, while Taiwan stocks ended 3.8% lower and Japan's Nikkei lost 2.6%. SK Hynix fell 9% even after reporting quarterly operating profit up more than sixfold, and Samsung Electronics dropped 5%. In Singapore, the FTSE Straits Times Index rose to a record 5,696.65 as money rotated into banks including DBS, OCBC and UOB. Separately, Monetary Authority of Singapore managing director Chia Der Jiun warned that a reversal in AI investment could hurt global growth and tighten financial conditions.