Capital markets across Asia were mostly under selling pressure in Tuesday's trading. This phenomenon was triggered by a massive sell-off of technology sector issuers, dampening market optimism following a positive rally on Wall Street in the previous session.
This negative sentiment was primarily driven by the stock performance of two South Korean tech giants, Samsung Electronics and SK Hynix. Samsung Electronics' shares fell by more than 5%, despite the company recently announcing impressive earnings due to a surge in demand for memory chips for artificial intelligence (AI) infrastructure. Meanwhile, SK Hynix recorded a correction of nearly 4% following the company's move to initiate a listing process on the US stock exchange.
This wave of weakness was not limited to South Korea, where the KOSPI index corrected by nearly 6%, but also spread to the Japanese market, with the Nikkei 225 index weakening by more than 1%. Similar conditions occurred in the Australian and mainland Chinese markets, which moved in the red zone, although the Hong Kong stock market showed an anomaly by maintaining an upward trend for four consecutive days.
For the Indonesian capital market, these regional conditions are a serious concern. The Jakarta Composite Index (IHSG) is predicted to experience psychological pressure, particularly in the tech and digital-based stock sectors, which often have a high correlation with market sentiment in the Asian region. Currently, domestic investors tend to be more conservative and continue to monitor foreign capital flows in response to the uncertainty occurring in the global tech sector.
