South Korean stocks plunge, erasing AI rally gains as chip selloff deepens

MarketsUnwinding of AI-linked trades sends warning signals across Japan and TaiwanStock in SK Hynix dropped on July 29 despite the South Korean company announcing robust earnings earlier in the day. © ReutersJADA NAGUMOJuly 29, 2026 17:43 JSTTOKYO -- South Korean stocks accelerated their recent declines on Wednesday, with concerns over the rise of Chinese chipmakers driving the nation's benchmark share index below a critical threshold and wiping out earlier gains from an AI-led rally.