KOSPI Plunges 7.6% and Nikkei Drops 4% Amid NVIDIA Credit Risk Fears

Asian tech indices crash as NVIDIA CDS costs surge on $750B deal concerns. SK Hynix hits record 30% drop, signaling severe semiconductor sector volatility.

Woofun AI reports that Japanese and South Korean equity markets experienced sharp declines driven by concerns over NVIDIA's credit risk following reports of a major AI supply agreement. The Nikkei 225 index fell up to 4%, reaching its lowest level since May 22, while the TOPIX index dropped 2.7%. The South Korean KOSPI index plunged 7.6% at one point, marking a new low since April 20.

Semiconductor stocks led the selloff, with Tokyo Electron, Kioxia, Samsung Electronics, and SK Hynix all falling over 9%. SK Hynix recorded its largest single-day drop in history, plunging 30%, while Kioxia fell 18%, its steepest decline since November. Nomura Asset Management strategist Hideyuki Ishiguro noted that investors interpreted the rise in NVIDIA's credit default swap costs as a bearish signal. Ishiguro also highlighted that China's advancements in semiconductor manufacturing equipment threaten Japanese suppliers' competitive advantages.