KOSPI Falls Far Harder Than Nikkei as AI Earnings Scare Hits Chipmakers

South Korea’s KOSPI fell 4.77% from Thursday’s close to 5,654.61 by 10:40 a.m. Seoul time Friday, while Japan’s Nikkei 225 lost 2.81%. The drop followed a 12.64% fall in Alphabet shares after the Google parent reported third-quarter revenue of $127.6 billion, below the $127.93 billion analysts expected, and capital spending of $51.4 billion, up 114% from a year earlier, leaving free cash flow at minus $9.1 billion. Samsung Electronics fell 6.25% and SK Hynix 8.91%, days after both reported record profits; Samsung’s common and preferred shares and SK Hynix made up 50% of KOSPI market value from Oct. 19 to 23. The Korea Exchange halted program selling at 10:04 a.m., the first sell-side pause in 11 trading days.