Asian stock markets plunged on Thursday, with South Korea's KOSPI crashing nearly 8 percent and Japan's Nikkei 225 tumbling more than 5 percent, as hotter-than-expected US inflation data fuelled fears of further interest rate hikes by the Federal Reserve. A deepening selloff in semiconductor and artificial intelligence (AI)-linked stocks intensified the rout, sending regional equities towards their lowest levels in months.
South Korea's KOSPI, widely regarded as a bellwether for the global AI trade, plunged 7.7 percent, heading for its steepest decline since April. Japan's Nikkei 225 fell about 5 percent, while Nikkei futures on the Osaka Exchange declined 5.4 percent. Hong Kong's Hang Seng index dropped 1 percent, and China's Shanghai Composite fell 1.5 percent.
The MSCI Asia Pacific index slid 2.9 percent, putting it on course for its lowest closing level since July, as investors continued to unwind positions in technology stocks that had led this year's AI-driven rally.
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Semiconductor stocks bore the brunt of Thursday's selloff, with South Korean chipmakers Samsung Electronics and SK Hynix plunging more than 9 percent each.