AI trade cracks: Kospi plunges 6% as chip stocks sell off

AI supplier shares fell sharply on Tuesday: South Korea's Kospi dropped over 6%, Samsung Electronics 10%, SK Hynix 8% and Kioxia 13%. Rising bond yields, Firmus's shelved $5-billion IPO and an IMF warning about a global AI correction drove the sell-off.

• Kospi fell over 6%; Samsung and SK Hynix lost 10% and 8%
• Kioxia dropped 13%, Philadelphia semiconductor index fell 2.7%
• Firmus shelved its $5-billion IPO as investor interest dried up
• IMF warned the consequences of an AI correction could be global