Warsh Comments Spark Rate Hike Fears, Dragging Asian Tech Stocks Down
Asian technology stocks declined on Monday after Federal Reserve Chair Kevin Warsh's comments revived expectations of a September rate hike. This shift comes as investors reassess the outlook for borrowing costs, with the probability of a rate increase now seen at 57%, up from roughly 35% before his Jackson Hole speech.
The U.S.-Iran fighting also contributed to the risk-off tone, pushing oil prices higher and adding to the pressure on technology stocks. The tech-heavy KOSPI fell 2.1%, while Japan's Nikkei 225 dropped 1.7% and the broader TOPIX slipped 0.7%. South Korean technology stocks bore the brunt of the selling, with SK Hynix falling 3.5% to 1.595 million won.
SK Hynix is also considering outsourcing part of its base-die production for next-generation HBM4E to Intel Foundry, potentially alongside its existing reliance on TSMC. The move may impact the stock's performance in the short term.