Korean Chipmakers Lead Asia Selloff Ahead of Tech Earnings

Asian shares slumped in the October 19 session, with Korean chipmakers taking the brunt of the selling as investors grew nervous ahead of upcoming AI-sector earnings reports. The move extended a broader pullback in Asian tech names that has been building as traders question whether AI infrastructure spending can keep justifying current valuations. The selloff coincided with gold prices dipping even as oil rose, a combination traders linked to renewed inflation worries and uncertainty over the Federal Reserve's next move. Higher oil prices feed directly into inflation expectations, which complicates the case for further rate cuts and can weigh on richly valued growth stocks like chipmakers. What remains unresolved is whether the earnings reports investors are bracing for will calm or confirm those AI valuation fears. A separate report noted chip stocks had just logged their longest losing streak since 2008, a historical pattern that in four of the past six similar instances preceded gains over the following year.