Global chip selloff reaches Japan as Nikkei slips on semiconductor profit-taking

SK Hynix's strong second-quarter earnings failed to calm worries over AI-related chip spending, and the resulting semiconductor selloff spread from South Korea to U.S. chip stocks, crypto derivatives and Japan's equity market. The memory-chip maker reported a 557% year-over-year rise in operating profit and about $54.5 billion in revenue, but its shares still fell nearly 10%-11% after it outlined at least $31 billion of 2026 capital spending. That helped drive South Korea's Kospi down 4.58% to 6,296.38, pushed the PHLX Semiconductor Index down more than 5% and knocked Nvidia, AMD, Micron and SanDisk lower, while SK Hynix-linked perpetual futures on Hyperliquid fell about 19%-20% and triggered roughly $60 million in liquidations later covered by a crypto firm. On August 7, Japan's Nikkei 225 extended its decline, closing down 76.55 points at 65,606.71 after earlier rising as much as 307.46 points, as traders took profits in AI and semiconductor shares ahead of the U.S. employment report and as higher crude prices linked to Iran concerns capped risk appetite. The broader market was firmer beneath the surface: TOPIX rose 19.08 points to 4,074.93, 25 of 33 industry groups advanced, and strong earnings helped support names such as Resonac Holdings and Nintendo even as SoftBank Group and Kioxia Holdings lagged. Active trading and selective buying of earnings-backed shares suggested the move was more a positioning adjustment than a broad reversal in regional equity sentiment.