Asian regional stock markets were mostly under selling pressure during Tuesday's trading. This phenomenon was triggered by massive profit-taking targeting technology sector stocks, dampening market optimism after Wall Street recorded a positive rally in the previous session.
The shock in Asian markets began with a slump in the stock values of two South Korean tech giants. Samsung Electronics shares tumbled more than 5%, despite the company recently posting solid profit performance driven by high demand for memory chips for artificial intelligence (AI) data centers. A similar condition was experienced by SK Hynix, which weakened nearly 4% following the announcement of the company's plans to list on the United States stock exchange.
This negative sentiment spread to several major benchmark indices in the region. South Korea's KOSPI index recorded a sharp decline of nearly 6%, followed by Japan's Nikkei 225 index, which fell more than 1%. Meanwhile, Australian and mainland Chinese markets were also dragged into the red, although the Hong Kong market managed to maintain an upward trend for the fourth consecutive day.
The correction in regional markets is projected to exert psychological pressure on the Indonesian capital market. The Jakarta Composite Index (IHSG) has the potential to face turbulence, particularly in technology and digital economy stocks, which share a high correlation with global market sentiment. Currently, domestic investors are observing an anticipatory stance by closely monitoring foreign capital flows in response to volatility in the Asian technology sector.
