Asian stocks slide on AI bubble fears, Fed uncertainty

Graphics by AJP Song Ji-yoon

SEOUL, December 15 (AJP) - Asian equity markets fell broadly on Monday, pressured by growing skepticism over artificial intelligence-driven growth and renewed uncertainty about the future path of U.S. monetary policy.

The sell-off reflected concerns that investor enthusiasm for AI-related stocks may be running ahead of fundamentals. Market uncertainty was compounded by reports that the Trump administration is considering Kevin Warsh, viewed as dovish, as the next chair of the U.S. Federal Reserve. The speculation appeared to contradict Fed Chair Jerome Powell’s recent guidance that only one additional rate cut is likely in 2026.

In South Korea, the benchmark KOSPI index closed down 1.84 percent at 4,090.59, dragged lower by heavy foreign selling. Overseas investors sold a net 957 billion won ($650 million), while institutions offloaded 478.3 billion won. Retail investors, anticipating a rebound, were net buyers of 1.42 trillion won.

Despite the equity sell-off, the Korean won strengthened, gaining 4.3 won to trade at 1,470.8 per dollar as of 4:40 p.m. local time. The yield on the 10-year government bond fell 8.4 basis points to 3.325 percent, reflecting a flight to safety.

Large-cap stocks led declines. Samsung Electronics fell 3.76 percent to 104,800 won, while SK hynix dropped 2.98 percent to 554,000 won. Hyundai Motor slid 2.65 percent to 293,500 won, weighed by profit-taking and investor assessments that its autonomous driving technology trails rivals such as Tesla, Zeekr and General Motors.

Korea Zinc bucked the broader market, jumping 4.87 percent to 1,592,000 won. Investors viewed Chairman Choi Yun-birm as gaining the upper hand in a management dispute with Young Poong, following reports that the company plans to build a 10 trillion won smelter in the United States and pursue an equity sale to U.S. investors through a third-party share issuance.

Biotech stocks also advanced, supported by expectations that U.S. rate cuts will improve sector profitability. Samsung Biologics rose 4.73 percent to 1,772,000 won, while Samsung Episholding surged 7.26 percent to 709,000 won.

Gains in biotech lifted the tech-heavy KOSDAQ, which closed 0.16 percent higher at 938.83. Aimed Bio, which has technology contracts with Boehringer Ingelheim and specializes in antibody-drug conjugate cancer treatments, soared 26.12 percent to 70,500 won, marking a record high since its December 4 listing.

Elsewhere in Asia, Japan’s Nikkei 225 fell 1.31 percent to 50,168.11. Semiconductor-related stocks were hit hard amid U.S.-led AI skepticism, with Advantest sliding 6.42 percent and Ibiden tumbling 6.78 percent. In contrast, export-oriented stocks benefited from expectations of looser U.S. monetary policy, with Toyota Motor rising 2.76 percent to 3,350 yen.

Taiwan’s TAIEX closed 1.17 percent lower at 27,866.94. Taiwan Semiconductor Manufacturing Company fell 2.03 percent to 1,450 Taiwan dollars, while MediaTek gained 1.07 percent on optimism surrounding its new Dimensity chipset and stronger smartphone sales in China.

Mainland Chinese markets also declined. The Shanghai Composite Index slipped 0.55 percent to 3,867.92, while technology-heavy benchmarks saw steeper losses. The Shenzhen Component fell 0.87 percent, and Hong Kong’s Hang Seng Index was down 1.36 percent at 25,625 as of late afternoon trading.
Kim Yeon-jae Reporter duswogmlwo77@ajupress.com

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