KOSPI plunged more than 6%, triggering a brief trading halt, with heavyweight chipmakers SK Hynix and Samsung Electronics declining between 8% and 11%

Asian stock markets fell on Thursday, with South Korean shares leading losses as a sharp selloff in semiconductor stocks and renewed concerns over Iran-U.S. tensions around the Strait of Hormuz dampened investor sentiment.

Traders awaited quarterly results from Taiwan Semiconductor Manufacturing Co later in the day for cues on AI demand.

KOSPI plunged more than 6%, triggering a brief trading halt, with heavyweight chipmakers SK Hynix and Samsung Electronics declining between 8% and 11%.

In other news, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75%, citing persistent inflationary pressures, rising household debt and resilience in the domestic economy.

Nikkei 225 slipped 2.7% as memory chip and semiconductor-related shares came under pressure, while the broader TOPIX index dropped 1.1%.

Investors remained wary after the U.S. tried to step up attacks on Iran, renewing concerns over shipping through the Strait of Hormuz.

Higher crude prices raised fears that persistent energy inflation could weigh on corporate earnings and limit central banks’ room to ease monetary policy.

Shanghai Composite and Shanghai Shenzhen CSI 300 edged 0.5% lower each, while Hang Seng rose 1.7% – bucking the trend.

S&P/ASX 200 edged down 0.3%, while Straits Times Index slid 0.5%.

Futures tied to Nifty 50 were largely muted.

Market attention was firmly on TSMC, the world’s largest contract chipmaker and a key international chip supplier.

Analysts expect the company to post a fifth straight quarter of record profit, driven by robust artificial intelligence-related demand, and investors will closely watch whether management raises its full-year revenue and capital spending forecasts.

The semiconductor sector remained under pressure amid concerns over the sustainability of AI-driven spending.