Asian equity markets came under renewed pressure on Tuesday as investors cut exposure to semiconductor and AI-related shares ahead of Nvidia’s earnings. South Korea’s KOSPI fell as much as 3.7% shortly after the open before trimming its decline to about 1.8% by late morning, while Japan’s Nikkei 225 slipped around 0.8% to 64,980, extending its losing streak to a third session. Samsung Electronics fell about 2.5%, and SK Hynix dropped 4.6%, with foreign investors selling a net 2.11 trillion won of Korean shares.
Samsung’s record shareholder-return proposal of 90 trillion won to 110 trillion won became an unexpected drag because investors wanted clearer commitments on buybacks and treasury-share cancellations. The broader caution reflects positioning before Nvidia reports on Wednesday, with expectations centered on quarterly revenue of roughly $92 billion. IG market analyst Fabien Yip said investors are increasingly focused on whether Nvidia’s growth rate is sustainable.
Japan’s decline was similarly concentrated in technology: Advantest fell 3.6%, Kioxia Holdings lost 2.8%, and Panasonic Holdings dropped 4%. The dollar traded around 159.13 yen, but that was not enough to offset semiconductor weakness. MSCI’s broadest Asia-Pacific index outside Japan fell about 0.5%, while US futures were mixed. Oil prices eased, with Brent around $92.08 a barrel and WTI near $85.09.
A separate analysis noted the KOSPI is in a local bear market after plunging 27% from its year-high. The sell-off has wiped out more than $2.5 trillion in South Korean market value. Samsung Electronics is down about 30% from its year-to-date high, SK Hynix has slumped 42%, and SK Square has plunged 52%. Margin loan balances rose from $19.4 billion in January to more than $27.7 billion in June, amplifying deleveraging pressure. Attention now turns to the Bank of Korea rate decision on Thursday and Federal Reserve Chair Kevin Warsh’s Jackson Hole speech on Friday.
