Asian Chip Stocks Fall on Warsh Rate‑Hike Comments and Oil Surge

On Monday, 31 August 2026, Asian technology equities retreated sharply after Federal Reserve official Kevin Warsh warned that the central bank still had “work to do” on inflation, reviving expectations of a September rate hike. Market participants now price a 57 % probability of a rate increase in September, up from roughly 35 % before Warsh’s remarks, and the U.S. two‑year Treasury yield rose to a one‑month high of about 4.33 %.

The heightened rate‑hike expectations pressured high‑growth, high‑valuation chip makers, while renewed fighting between the United States and Iran pushed crude oil (LCO) up 5.42 %, adding a risk‑off tone across the region. U.S. equity futures mirrored the caution, with Nasdaq 100 futures down 0.6 % and S&P 500 futures down 0.4 % in Asian trade.

Equity Index Moves

  • South Korea’s KOSPI fell 2.1 %.
  • Japan’s Nikkei 225 dropped 1.7 % and the broader TOPIX slipped 0.7 %.
  • Hong Kong’s Hang Seng declined 0.8 %.
  • China’s CSI 300 fell 0.9 % and the Shanghai Composite lost 0.3 %.

Major Chip and Technology Stocks

  • SK Hynix Ltd fell 3.5 % to 1,595 won, extending its monthly loss to about 7.2 %.
  • Samsung Electronics Co Ltd dropped 2.5 % to 250,500 won, taking its month‑to‑date decline to roughly 4.6 %.
  • Taiwan Semiconductor Manufacturing Co Ltd (TSMC) slipped 1.7 % and the Taiwan‑wide Taiex index fell about 1.9 % for the day, leaving TSMC down nearly 2 % for August while the Taiex remains about 5.6 % higher for the month.
  • SK Hynix is reported to be evaluating outsourcing part of its next‑generation HBM4E base‑die production to Intel Foundry, potentially alongside its existing partnership with TSMC.
  • Japan’s Kioxia Holdings rose 1.1 %, Sony gained 0.8 %, and Largan Precision climbed 3.3 %.
  • TDK Corp fell 2.3 % and Murata Manufacturing Co Ltd dropped 4.1 %, though TDK is still up about 1 % for the month.
  • LG Innotek Co Ltd has risen nearly 19 % this month, while Foxconn (Hon Hai Precision) is up almost 10 % month‑to‑date.

Chinese Technology Names

  • SMIC and Guoxin Technology each slipped more than 2 % on the day.
  • NetEase, Xiaomi, and Baidu all fell over 1 % in the session.
  • Alibaba Group lost about 1 % intraday and is down roughly 3.6 % for August.
  • Tencent Holdings Ltd fell around 1.5 % intraday and is down about 5.6 % for the month.

Market Context

The sell‑off follows last week’s Nvidia earnings, which had initially buoyed AI‑related chip makers on the back of strong infrastructure demand. However, elevated valuations and the prospect of higher short‑term financing costs have made investors sensitive to any shift in monetary policy or risk sentiment. The article notes that the next U.S. labor‑market and inflation releases will be closely watched to see if the heightened September‑hike expectations persist.