Taiwan index falls 3.41%, KOSPI 7.57% as hot US inflation hits Asian chip stocks
Representative image: sergeitokmakov / Pixabay
On October 15, 2026, Taiwan's TAIEX fell 3.41%, Korea's KOSPI 7.57% and Japan's Nikkei 4.90% as US inflation of 3.7% and AI worries hit chip stocks.
What Happened
Asian stock markets fell sharply on Thursday, October 15, 2026, as a sell-off in technology and chip shares deepened after hotter-than-expected US inflation data. South Korea's KOSPI index closed 7.57% lower at 5,554.23, after an intraday fall of more than 8% triggered a circuit breaker that halted trading for 20 minutes. Japan's Nikkei 225 fell 4.90% to 64,425.90. Taiwan's main index, the TAIEX, dropped 1,655.96 points, or 3.41%, to 46,969.87, its lowest close in about four weeks. US consumer prices rose 3.7% in September from a year earlier, above the 3.6% forecast, which revived fears that the Federal Reserve could raise interest rates again.
Key Facts
- KOSPI (South Korea): down 7.57% to 5,554.23; trading paused for 20 minutes after an intraday drop of more than 8%.
- Nikkei 225 (Japan): down 4.90% to 64,425.90.
- TAIEX (Taiwan): down 3.41%, or 1,655.96 points, to 46,969.87, a four-week low.
- Chip stocks led the fall: SK Hynix lost more than 11% during the day, Samsung Electronics nearly 10% and Japan's Kioxia more than 12%. In Taiwan, ASE Technology Holding fell by the daily limit of 10%.
- Trigger: US consumer price inflation of 3.7% for September, against a forecast of 3.6%, raising the chance of another Fed rate rise.
- Background worry: concern over the cost of financing AI investment, rising competition and the risk that chip profits are near their peak.
- TSMC fell 2.0% in Taipei before reporting record quarterly profit after the close.
Why It Matters
The markets that fell hardest are the ones most tied to the boom in artificial intelligence hardware. South Korea is home to the memory-chip makers Samsung Electronics and SK Hynix, and Taiwan's market is heavily weighted towards chipmakers and their suppliers. Investors have pushed these shares to record highs on expectations of years of strong AI demand. When those hopes are questioned, the indexes that depend most on chip companies fall the furthest, which is what happened on Thursday.
Two worries met on the same day. The first is interest rates. Higher-than-expected US inflation makes another Fed rate rise more likely, and higher rates make borrowing more expensive and reduce what investors are willing to pay for future profits, which hurts fast-growing technology stocks most. The second is the AI trade itself. Investors have been asking whether the huge sums being borrowed to build AI data centres will pay off, and whether chip prices and profits can keep climbing.
For Indian investors, the rout is a reminder of how far global markets now move together. The Taiwan index was a trending search term in India on Thursday and Friday, a sign of how closely Indian traders watch Asia's chip markets. Indian investors who hold global or Asian technology funds are directly exposed to such swings.
| Index | Close on October 15, 2026 | Change |
|---|---|---|
| KOSPI (South Korea) | 5,554.23 | -7.57% |
| Nikkei 225 (Japan) | 64,425.90 | -4.90% |
| TAIEX (Taiwan) | 46,969.87 | -3.41% |
Impact
Short-term: Traders will watch whether Asian markets steady after Thursday's fall, how TSMC's record results and guidance are received, and what the next US data and Fed comments say about rates. Circuit breakers like the one in Seoul are meant to give investors time to pause during panic selling.
Long-term: If worries about AI spending and rates persist, chip-heavy markets could face a longer correction after their strong run. If AI demand stays strong and inflation eases, Thursday may prove a sharp but short shake-out.
Who is affected: Investors in Korean, Japanese and Taiwanese shares, global funds heavily invested in chipmakers, companies in the AI supply chain, and Indian investors who hold global or Asian technology funds.
Key Takeaway
A hot US inflation reading and doubts about the AI boom sent the KOSPI down 7.57%, the Nikkei down 4.90% and Taiwan's TAIEX down 3.41% on October 15, 2026.
Questions and Answers
Why did the Taiwan index fall on October 15, 2026?
The TAIEX fell 3.41% to 46,969.87 as chip stocks were sold across Asia after US inflation came in at 3.7%, above forecasts, raising fears of another Fed rate rise, and as worries grew about the cost of AI investment.
How much did the KOSPI fall?
South Korea's KOSPI closed 7.57% lower at 5,554.23. An intraday fall of more than 8% triggered a circuit breaker that halted trading for 20 minutes.
Which stocks fell the most?
Chipmakers led the decline. SK Hynix fell more than 11% during the day, Samsung Electronics nearly 10% and Kioxia more than 12%, while ASE Technology Holding in Taiwan fell by the 10% daily limit.
What does US inflation have to do with Asian stocks?
Higher US inflation makes a Federal Reserve rate rise more likely. Higher rates raise borrowing costs and reduce the value investors put on future profits, which hits fast-growing technology and chip stocks hardest.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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Reported, fact-checked and published by the Peepals Global Editorial Team.
