Asian technology shares attempted a fragile recovery in late October as investors weighed strong AI-related demand against widening trade deficits, foreign selling and questions about how AI infrastructure will be financed. Japan's Nikkei 225 rebounded on Wednesday after a steep semiconductor-led decline, climbing as much as 2.1% to 65,404.63 before paring its advance to about 1% at 64,718.98. Kioxia Holdings rose 5.1%, Advantest gained 4.8% and SoftBank Group advanced 3.5%, helped by stronger revenue guidance from US AI-server maker Super Micro Computer. Still, Japan's September trade data showed exports rose 16.7% year on year, missing the 20.1% forecast, while imports grew 18.9%, producing a ¥536.6 billion trade deficit that was nearly three times economist expectations.
In South Korea, the rebound proved even more fragile. Samsung Electronics declined 0.22% and SK Hynix lost 0.93% on Thursday, while the KOSPI fell 0.68%, interrupting Wednesday's bounce in which both chipmakers gained more than 7% and the benchmark recovered 3.29%. An October sell-off had erased approximately $792 billion in market value through 20 October. Foreign investors sold a net 18.115 trillion won of KOSPI shares from 1 to 20 October, with SK Hynix accounting for 9.966 trillion won and Samsung 4.075 trillion won of outflows. Overseas buyers returned on Wednesday with about 660 billion won of purchases, but Thursday's early retreat showed confidence remains weak.
Analysts warned that earnings updates later in October would be critical. SK Hynix reports on 28 October and Samsung on 29 October, with attention on high-bandwidth memory sales, pricing, order visibility and guidance. South Korea's semiconductor exports rose 222.5% by value in the first 20 days of October, but concerns over debt-funded AI spending, competition from China's CXMT, elevated oil prices near $110 a barrel and possible further Bank of Japan rate tightening cloud the outlook. Mirae Asset Securities executive Seo Sang-young said market direction depends heavily on foreign flows into chipmakers and global oil prices.
The moves have no direct crypto-specific trigger, though they may shape broader risk appetite across global markets.
