Asian stocks fell sharply on Monday as technology shares faced renewed selling pressure, led by steep losses in Samsung Electronics and Alibaba. Escalating U.S.-Canada trade tensions and elevated Treasury yields further weakened investor appetite for risk.
South Korea’s KOSPI dropped 3.4%, with Samsung Electronics plunging 8.7% after its shareholder return plan disappointed investors. The company plans to return up to 110 trillion won ($80 billion), but the announcement fell short of market expectations. SK Hynix also declined 2.4% as semiconductor stocks remained under pressure ahead of Nvidia’s earnings on Wednesday.
Nvidia’s results will be closely watched for signs that rapid artificial intelligence growth can support high technology-sector valuations. Investors are also awaiting Federal Reserve Chair Kevin Warsh’s Jackson Hole speech on Friday for clues about the U.S. interest-rate outlook.
Hong Kong’s Hang Seng Index sank 2.1%, dragged lower by Alibaba, which tumbled nearly 10%. The Chinese technology giant priced an HK$80 billion ($10.2 billion) share placement at HK$112.70 per share, representing an 8.4% discount to its previous close. Alibaba plans to direct the proceeds toward AI infrastructure and capabilities.
Mainland Chinese stocks recorded smaller declines, with the CSI 300 down 1.3% and the Shanghai Composite falling 0.7%. Japan’s Nikkei 225 slipped 0.5%, while SoftBank dropped 5% after announcing a record ¥1 trillion retail bond offering.
Market sentiment was also hurt after U.S. President Donald Trump imposed 50% tariffs on $20 billion of Canadian goods following failed trade negotiations. Canada responded with reciprocal measures, raising concerns about global trade and corporate costs.
Meanwhile, U.S. Treasury yields remained elevated, with the 10-year yield around 4.71% and the 30-year yield near 5.25%.
Australia bucked the regional decline, with the S&P/ASX 200 gaining 0.5%. Ampol jumped 5% after first-half underlying net profit surged 376% to A$857.2 million, supported by stronger refining margins amid Middle East supply disruptions.
