South Korean chip equipment stocks fell sharply after a steep rally fueled by expectations of an artificial intelligence boom. Hanmi Semiconductor dropped 7.71% to 233,500 won by 10 a.m. on the 11th, while Nexteen fell 6.97% and several peers declined more than 5%. The Korea Exchange designated Doosan Tesna, TCK and LEENO Industrial as overheated short-selling stocks, suspending short-sale transactions for one day in regular and after-hours trading. The designation applies when conditions including a twofold increase in short-selling turnover are met. The selloff followed strong gains in stocks and sector exchange-traded funds, as rising oil prices and interest rates amid the prolonged Middle East conflict weakened global sentiment and encouraged profit-taking. The KOSPI fell 2.42% to 6,863.73, while the KOSDAQ dropped 1.77% to 822.14.