Asia stocks fall as chip selloff spreads, breaking ranks with Wall St highs

Asia-Pacific equities fell broadly after a sharp selloff in semiconductor names, led by Samsung Electronics, even though Samsung’s second-quarter operating profit forecast jumped roughly 19-fold and beat expectations. Japan’s Nikkei fell about 1.3% as chip-related heavyweights tracked the weakness, while the broader Topix only eased after earlier touching a record high. South Korea’s KOSPI dropped more than 5% in early trade. The move appears sector-specific and driven by profit-taking in chips rather than a broad risk-off shift, as investors rotated into financials and other value stocks; Japanese banking shares and Toyota Motor gained. The divergence from Wall Street’s overnight highs underscores that regional chip sentiment, not global macro fear, is driving the weakness.