Bloomberg Asia Semiconductor Index Drops Over 2% to July Low Amid AI Spending Concerns and DeepSeek Update

The Bloomberg Asia Semiconductor Index dropped more than 2% on Monday to touch its lowest level since July, weighed down by growing uncertainty over U.S. artificial intelligence infrastructure funding and the competitive impact of DeepSeek's recent weekend model update. Major semiconductor and hardware equities led the retreat, with Taiwan Semiconductor Manufacturing Co. (TSMC), South Korea's SK Hynix, and Japan's Advantest Corp. logging steep declines. The broader regional markets reflected the risk-off sentiment, as South Korea's benchmark KOSPI tumbled over 3% and Japan's Nikkei 225 shed up to 2.3%. Market participants now turn their focus to impending quarterly earnings reports from megacap technology leaders Meta Platforms and Tesla later this week, which are anticipated to provide critical guidance on corporate AI capital expenditure trajectories.