Asian Stocks Fall as Broadcom Hits Chip Sentiment; Korea’s KOSDAQ Bucks the Trend

Asian equity markets started Thursday’s session on the back foot, tracking Wall Street’s June 3 selloff as geopolitical risk tied to the U.S.–Iran conflict kept oil prices elevated and pushed Treasury yields toward 4.5%. The session carried an additional dynamic in South Korea: with the market closed Wednesday for national election day, the KOSPI reopened Thursday absorbing a full session of missed moves. While large-cap chip and auto stocks dragged the benchmark lower, the KOSDAQ staged a sharp counter-rally — the clearest example of sector rotation the Korean market has seen in weeks.

South Korea: KOSPI Falls on Reopening; KOSDAQ Surges on Stimulus Play

South Korean markets were closed on Wednesday, June 3, for the national local election holiday. Thursday’s reopening gave investors their first chance to react to the overnight Wall Street losses — and they did, selling aggressively in the first minutes of trade.

KOSPI: −1.84% → 8,639.41 (ended a three-session win streak)
KOSDAQ: +2.31% → 1,049.73
KRW/USD: 1,529.7 won, down 13.7 won from the previous session

Source: The Korea Herald – Kospi Snaps 3-Day Rise, Won Sharply Down (June 4, 2026)

Chip and Auto Stocks Lead KOSPI Lower

Semiconductor and automobile names — the heavyweights that powered the KOSPI’s recent record run — bore the brunt of Thursday’s selling. Broadcom’s after-hours guidance miss on Wednesday night (AI chip revenue guided to $16B in Q3, below the $17.2B analyst consensus) reignited questions about the pace of AI hardware demand, sending a risk signal directly into the HBM and advanced packaging supply chain. (Bloomberg)

Stock	Change	Close (KRW)
Samsung Electronics	−2.50%	351,500
SK hynix	−2.63%	2,298,000
Hyundai Motor	−3.98%	700,000
Samsung Electro-Mechanics	−5.35%	1,716,000
Samsung Life Insurance	−8.75%	438,000

Foreign investors extended their net selling streak to 19 consecutive sessions, offloading significant positions as the won weakened and overnight sentiment deteriorated. (The Korea Herald)

KOSDAQ: A Different Story Entirely

While the KOSPI sank, the KOSDAQ rose 2.31% — a striking divergence explained by two forces acting simultaneously.

First, sector rotation: investors who had been riding the large-cap semiconductor rally booked profits and shifted into previously overlooked small- and mid-cap names. After falling more than 12% over the prior five sessions, the KOSDAQ had built up a significant mean-reversion case. Second, market-specific policy catalyst: the Financial Services Commission (FSC) announced it was holding an emergency meeting to discuss revitalization measures for the KOSDAQ, lifting biotech, equipment, and materials stocks. Jusung Engineering gained 9.95%, while EcoPro BM rose 3.54%. (The Korea Times, Seoul Economic Daily)

Japan: Nikkei Retreats From Wednesday’s Record High

Japanese equities gave back a portion of Wednesday’s record-setting gains. The Nikkei 225 had surged 2.57% on June 3 to its highest-ever close above 68,000, largely on momentum from AI-linked semiconductor plays. Thursday’s session brought a controlled retracement as global risk appetite softened.

Nikkei 225: −1.83% → 67,150
TOPIX: −0.80% → 3,964

Source: Trading Economics – Japan Stock Market

Technology and semiconductor-linked names, which had fueled Thursday’s record — Tokyo Electron surged 13.4% and Advantest jumped 5.1% in the prior session — retreated as Broadcom’s guidance cast a near-term shadow over AI chip spending growth. The pullback was orderly, with the broader TOPIX declining a more modest 0.80%, suggesting the underlying bid in Japanese equities remains intact.

China and Hong Kong: Tech Selloff Extends

Mainland and Hong Kong markets both moved lower as the combination of Wall Street weakness, rising oil costs, and cautious sentiment around AI hardware spending weighed on regional technology names.

Hang Seng Index (Hong Kong): −1.10% → 25,364 (−270 pts)
Shanghai Composite: −0.64% → 4,057.78

Source: Trading Economics – Hong Kong Stock Market

In Hong Kong, technology hardware names faced direct pressure from the Broadcom guidance signal. Lenovo fell 3.6% and Semiconductor Manufacturing International (SMIC) declined 1.8%, consistent with broader anxiety about AI infrastructure spending timelines. Shanghai’s Composite posted a milder loss, with selective support from domestic policy-sensitive sectors partially cushioning the decline.

Common Macro Drivers Across the Region

Variable	Level (June 4)	Direction vs. Prev. Day	Implication
WTI Crude Oil	$96.02 / bbl	▲ +2.4%	Inflation pressure; transport cost headwind
10-Year UST Yield	~4.48%	Elevated	Reduces equity risk appetite; USD supportive
USD/KRW	1,529.7	▲ Won −13.7 won	KRW weakness adds import inflation pressure
Broadcom (AVGO) AH	~−3%	▼ Guidance miss	AI chip demand timeline uncertainty; HBM supply chain risk
US-Iran Talks	Stalled	No resolution	Geopolitical risk premium in oil markets

What Investors Should Watch From Here

U.S. May Nonfarm Payrolls (Friday): The stronger-than-expected ADP print (+122,000 vs. 110,000 consensus) has set expectations higher for Friday’s official jobs report. A reading above 150,000–170,000 could push the 10-year Treasury yield above 4.5%, triggering another round of selling in high-multiple growth stocks across Asian markets.
Korea FSC KOSDAQ Stimulus: The FSC’s emergency meeting on KOSDAQ revitalization is the most market-specific catalyst to monitor. If concrete measures are announced — whether sector-targeted incentives, listing reforms, or demand-side support — the KOSDAQ rally could extend. Without follow-through, the bounce risks fading quickly.
Oil and Iran Diplomacy: WTI near $96 and Brent approaching $98 is already a material inflation headwind. A further escalation that brings oil toward $100 would force central banks to hold higher for longer, compressing Asia-Pacific equity multiples broadly.
Broadcom’s Chip Demand Signal: Markets are now pricing in whether Broadcom’s $16B Q3 AI semiconductor guidance — below the $17.2B analyst estimate — represents a genuine slowdown in hyperscaler AI capex or simply analyst over-optimism. Samsung, SK hynix, and the wider Asian semiconductor supply chain will trade in the shadow of that debate until the next data point arrives.
Foreign Flows in Korea: Nineteen consecutive sessions of net foreign selling on the KOSPI is a structural headwind. Watch whether the won’s continued weakness — now past 1,530 per dollar — accelerates or reverses this trend.

Track real-time moves in the KOSPI, Nikkei 225, and oil prices alongside Friday’s U.S. jobs report on ECONPLEX. The economic calendar shows exactly when the market-moving data drops.