Share Prices & Company Research

Market News

03 Nov 2026 | 09:18

Asia report: Chip stocks tumble in SK and Taiwan; Australian stocks up despite rate hike

(Sharecast News) - Asian stock markets finished mixed on Tuesday, with heavy losses for semiconductor companies dragging down indices in South Korea and Taiwan, while Hong Kong and Australia bucked the wider decline. Technology stocks came under pressure following weakness in the sector on Wall Street overnight, with investors weighing the substantial investment requirements of the AI industry.

South Korea's Kospi and Taiwan's Taiex both tumbled 3.6% and China's Shanghai Composite declined 0.8%, while Hong Kong's Hang Seng rose 0.6%. Japan's markets were closed for the Culture Day public holiday.

South Korean semiconductor heavyweights SK Hynix and Samsung Electronics were notable fallers, along with Taiwan-listed chip designer MediaTek and contract chip manufacturer TSMC.

Elsewhere, Australian shares advanced despite another increase in interest rates by the country's central bank. The S&P/ASX 200 rose 0.3% after the Reserve Bank of Australia raised its benchmark cash rate by 25 basis points to 4.85%, its fifth increase this year.

The central bank said inflation remained elevated, with rising fuel and commodity costs contributing to price pressures. It also highlighted rapid price growth in technology-related goods associated with investment in AI.

The RBA warned that inflation was likely to remain above its 2-3% target range for longer than previously expected, with a return to the midpoint of that range not anticipated until mid-2028.

Among individual stocks, Qantas and Virgin Australia surged 8.9%, while electronics retailer JB Hi-Fi also put in solid gains. Sydney-listed energy companies were weaker, including Woodside Energy and Santos, after a heavy drop in crude prices on Monday.

Front month Brent futures were up 1.7% at $106.57 by the close of trade in Asia, following a 7.6% tumble to $104.77 the previous session.
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