The sharp decline hit semiconductor giants hardest, with Samsung Electronics shedding 9.1% and SK Hynix cratering 15%. This wave of selling originated from jitters on Wall Street, specifically following reports that Meta intends to monetize excess computing power. Saxo Markets strategist Charu Chanana noted that hyperscalers may be pivoting toward profitability rather than blind expansion, a shift that leaves Asia’s infrastructure-heavy equity market in a precarious position.

Broader regional indices mirrored the downturn. Japan’s Nikkei closed 2.5% lower, dragged down by double-digit losses at Kioxia, while China’s tech-focused Chinext Index dropped 5.7%. Conversely, Hong Kong’s Hang Seng Index managed a 0.8% gain as investors bought back into Chinese internet stocks like Alibaba and JD.com. Beyond the tech sector, oil prices also retreated; Brent crude forecasts were slashed by UBS and OCBC as concerns over supply disruptions in the Strait of Hormuz eased, with Brent settling at $71.12 a barrel.