SoftBank sinks 8.3% as Asia tech stocks track Wall
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- SoftBank Group plunged 8.3% after efforts to secure at least $6 billion through a margin loan backed by its OpenAI stake hit a snag, according to Bloomberg News; the company is exploring alternative funding options and may revisit the loan later.
- Japanese chip equipment makers Advantest and Renesas Electronics closed 4.2% and about 2% lower, respectively, extending the selloff beyond SoftBank.
- South Korean memory chipmakers SK Hynix and Samsung Electronics dropped 7.5% and 6.1%, while display panel producer LG Display slid 7.6%.
- Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, fell about 2% and an Apple supplier lost more than 5.2%, dragging Taiwan's chip sector.
- The declines followed a weaker Wall Street session — the Nasdaq fell 0.97%, the S&P 500 slipped 0.26%, and the iShares Semiconductor ETF dropped 1% after a one-day chip rally faded.
- OpenAI confidentially filed for an IPO on Monday while SpaceX is scheduled to begin trading Friday at an expected $1.75 trillion valuation, raising concerns that upcoming AI listings could divert capital from publicly traded tech stocks.
- Andrew Jackson of Ortus Advisors said the volatility may prompt a rotation into Japanese defense names, specifically citing Mitsubishi Heavy Industries, Kawasaki Heavy Industries, IHI Corp. and Japan Steel Works as potential beneficiaries.
Why it matters: SoftBank's failure to secure a $6 billion margin loan backed by its OpenAI stake coincided with an 8.3% plunge — the steepest in a broad Asian tech rout where SK Hynix fell 7.5% and Samsung dropped 6.1%.
