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Avi Dandiya || Chicago || Hindu Temple || Non Resident Indians
🚨This is why Asian markets are crashing.
South Korea's KOSPI crashed more than 8% and triggered a circuit breaker that halted trading for 20 minutes.
Japan's Nikkei fell more than 4% and Taiwan's TAIEX fell 3.41%.
Here is what is hitting them all at the same time:
1. Fears of a memory chip oversupply.
A column in Maeil Business Newspaper, a leading South Korean financial daily, warns the memory boom could end as early as 2029 as new capacity comes online.
Memory is in short supply right now, so prices and profits are very high. When supply catches up, prices fall and so do the profits.
The column says Korea has only 2 to 3 years to build new industries before the cycle could reverse.
2. Elon Musk added to the fear.
He wrote: "China will be making a LOT of RAM in 2028."
That is earlier than the 2029 date in the column, so the oversupply could start sooner than expected.
China's CXMT plans to go from 350,000 wafers a month at the end of 2026 to 500,000 by the end of 2028.
Morgan Stanley also estimates China will make up 30% of new global DRAM capacity by 2028.
3. US inflation came in hotter.
September CPI rose to 3.7%, above the 3.6% expected. That pushed up the odds of a Fed rate hike, and markets reacted negatively.
US chip stocks fell for a sixth straight day last night, erasing about $1.6 trillion in value. The same selloff is now following through in Asia.
4. War is keeping oil near $95.
The US is considering using the "Mother of All Bombs" against Iran if President Trump orders new strikes.