Chip stocks drag South Korea's Kospi index lower.

Samsung Electronics and SK Hynix extended their declines as worries mounted over competition and that AI stocks have risen too far. Both stocks fell more than 5% Tuesday, heading for a fifth straight decline, after US chipmaker shares also dropped overnight, with Micron Technology down 3.9%. South Koreas benchmark Kospi also fell more than 5%. At 9:47 a.m. local time, the Korea Exchange also activated a so-called sidecar mechanism, halting Kospi program selling for five minutes, after Kospi 200 Index futures fell more than 5%. Meanwhile, Broadcoms CEO remarks that investing in AI stocks has a gambling nature added to market concerns. The Korean chipmakers valuations and share prices appear to be weighed down by uncertainty over whether the boom cycle can last through 2028 and beyond, said Ha SeokKeun, chief investment officer at Eugene Asset Management.