Asian stocks declined on Tuesday as investors rotated out of AI chip stocks on doubts over the sustainability of the AI boom. China's Shanghai Composite index ended 1.26 percent lower at 3,990.24 despite authorities in Beijing and Hong Kong unveiling measures to boost financial connectivity and yuan internationalization, while Hong Kong's Hang Seng index dipped 0.51 percent to 23,496.89. Japanese markets tumbled, with the Nikkei average falling 2.12 percent to 68,256.96 and the broader Topix index settling 0.97 percent lower at 4,062.26, dragged down by semiconductor heavyweights including Advantest, Tokyo Electron, and Kioxia Holdings. Seoul stocks nosedived, with the Kospi index falling 4.91 percent to 7,656.31 on concerns over high AI-related stock valuations, as Samsung Electronics slumped 6.9 percent despite flagging a 19-fold jump in second quarter operating profit and SK Hynix plunged 6.1 percent after kicking off a U.S. share sale to raise 43 trillion won. Australian stocks ended slightly lower, with the benchmark S&P/ASX 200 slipping 0.31 percent to 8,803.90, while New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 13,762.79.
SK Hynix Inc
Kioxia Holdings Corporation
Advantest Corp.
TE Connectivity Ltd
Samsung Electronics Co Ltd