On July 8, Japanese and South Korean stock markets lost roughly $363 billion in combined market value as a tech-led selloff hit the region. Japan’s Nikkei 225 closed down 2.11%, while South Korea’s KOSPI plunged 5.35%, triggering a temporary trading curb during the session.
By the end of trading, 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.
What Crashed the Markets?
Chipmakers took the heaviest blow. 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.
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.
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.
Is There Hope for a Rebound?
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, suggesting that the short-term selling wave may be starting to lose momentum.
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%.
The next key benchmark for the region may be SK Hynix’s planned U.S. listing on Friday. Investors are watching it closely as a possible signal for whether Asia-Pacific semiconductor stocks can stabilize after the recent selloff.
For now, the combined daily losses of around $363 billion show how vulnerable overheated tech sectors remain. The next move will likely depend on chipmaker earnings, U.S. tech sentiment and developments surrounding Iran.
