Major Asia Listed Tech Names Sell Off

Shares of major Asian tech stocks sold off heavily to start the week, with major suppliers to Apple Inc. (NASDAQ: AAPL) and NVIDIA Corporation (NASDAQ: NVDA) particularly impacted. The potential impacts of new U.S. tariffs on electronics and technology imports are continuing to cause market unrest. The tariffs, announced by President Donald Trump, include a 10% baseline on all imports, with specific higher rates for goods from various countries including China, Japan, South Korea, and Taiwan.

In South Korea, Samsung Electronics shares (KRX: 005930) experienced a 5.17% drop, while SK Hynix (KRX: 000660) fell by 9.55% to start the week. This sharp decline is symptomatic of the broader regional impact felt by tech manufacturers linked to U.S. markets.

On the Taiwan stock exchange, U.S.-listed shares of Taiwan Semiconductor Manufacturing Co (NYSE: TSM) are 9.71% in the red through pre-market, on top of a 27.18% YTD.

Japan's Advantest Corp. (TYO: 6857), known as a critical supplier to Nvidia, also saw its shares slide by more than 9%, reflecting concerns over potential disruptions in supply chains due to the tariffs. These tariffs are designed to address trade imbalances, but analysts have warned they could result in higher production costs and consumer prices.

Further concern arises from the potential for dampened demand and the necessity for supply chain adjustments by companies affected by the increased costs. While these measures aim to rectify trade discrepancies, they may inadvertently cause more economic strain for companies reliant on international trade.