South Korean stocks plunge over 11% in tech rout

South Korean stocks fell more than 11% on Wednesday as a technology selloff deepened across parts of Asia, with chipmakers SK hynix and Samsung among the biggest fallers.

The Kospi index was down 11.4% at 5,338.56 around 0445 GMT after falling more than 12% at one point. The drop extended a nearly 11% fall on Tuesday.

SK hynix shed almost 20% after falling more than 14% on Tuesday. It has lost more than 50% since reaching a record high a month ago. Samsung fell more than 12%.

The selling came as investors questioned the scale of spending on artificial intelligence and the outlook for chip companies after a two-year rally in several markets. SK hynix is a major supplier of high-bandwidth memory chips to Nvidia.

Josh Gilbert of eToro said the market was unlikely to focus only on SK hynix's headline numbers. He said investors would also look at whether margins and guidance could justify the company's recent performance.

Other Asian chip stocks also fell. Tokyo's Nikkei 225 was down 2.3%, with Kioxia down 13% and Tokyo Electron down 12%. Taipei gave up 5%, while TSMC was down 4%.

Some other Asian markets rose. Hong Kong's Hang Seng Index was up 1.4%, while Sydney, Singapore, Wellington, Manila and Mumbai also gained.