Will the collapse in Asia paint the local market red too? Ahead of the opening in Tel Aviv
Following the decline in chip stocks on the Tel Aviv Stock Exchange, the negative trend has continued in Asia. Investors are monitoring the plunge in Samsung and SK Hynix shares amid growing concerns over AI investments.
A day after chip stocks led the declines on the Tel Aviv Stock Exchange, sales in the sector continue this morning in Asia. The Seoul Stock Exchange is plunging by nearly 10%, Samsung and SK Hynix are losing more than 11%, against a backdrop of growing concerns surrounding investments in artificial intelligence and competition from China.
Ahead of the opening of trading in Tel Aviv
Investors will monitor the collapse in chip stocks in Asia, which follows sharp declines in the sector on Wall Street yesterday. Yesterday, the local exchange closed with sharp declines, which intensified towards the close with the erasure of gains in technology stocks in New York.
Tower fell by 14.6% and concentrated the highest turnover on the exchange - over 240 million shekels. Also in the chip sector - Nova fell by 7.9% and Camtek lost 7.1%. Although dual-listed chip stocks closed with declines on Wall Street yesterday, they did not accumulate significant gaps relative to their closing prices in Tel Aviv.
The Seoul Stock Exchange is plunging this morning by nearly 10%, with Samsung and SK Hynix shares losing more than 11% each. In Japan, too, sharp declines are being recorded in chip stocks, against a backdrop of concerns over the continuation of massive investments in artificial intelligence infrastructure and the intensification of competition from Chinese chip manufacturers.
The declines in Asia come after Nvidia's stock fell yesterday by 5%, alongside a similar decline in AMD.
On the Tel Aviv Stock Exchange yesterday, the declines intensified in the final minutes of trading. Defense stocks stood out with declines against the backdrop of hopes for an end to attacks by Iran and the USA.
The TA-35 index weakened by 2.2%, TA-125 lost 1.9%, TA-Real Estate retreated by 1%, TA-Defense fell by 3.7%, TA-Technology erased 3.5%, while TA-Banks closed with an increase of 0.6%.
Elbit Systems weakened by 3.2%, Next Vision lost 3.8%, Bet Shemesh Engines retreated by 3.7%, Orbit Technologies lost 2.5%, Third Eye erased 11.1%, and Aerodrome plummeted by 13%.
Nice stock stood out in green and jumped by 7.2%. Allume strengthened by 4.5% after Nofar Energy announced an increase in its holdings in the company.
Sharp declines in chip stocks in Asia
The sharp declines in technology stocks on Wall Street yesterday continue this morning in Asia and are dragging the markets into sharp falls. The KOSPI index on the Seoul Stock Exchange is plunging by 9.8%, Nikkei in Tokyo is falling by 4%, in China the Shanghai index is losing 1% and the Shenzhen index is falling by 3.4%, while the Hang Seng index in Hong Kong weakened by 0.3%.
Samsung stock is plummeting by 11.4% and SK Hynix is falling by 11.9%. Chip stocks in Japan are also trading with sharp declines: Tokyo Electron is plummeting by 10.8%, Advantest is erasing 10%, SoftBank, considered a central exposure to artificial intelligence through its holding in ARM, is weakening by 5%, and memory chip manufacturer Kioxia is plummeting by 18%.
