The Tokyo and Seoul stock exchanges opened sharply lower following the slump recorded by semiconductor stocks on Wall Street, triggered by reports of a possible technological breakthrough by China in the production of advanced chips. The Nikkei 225 fell 4.1% to 62,248.78 points, while Seoul's Kospi lost 7.9% to 6,221.81 points.
Leading the declines were South Korea's major semiconductor manufacturers: Samsung Electronics shed more than 7%, while SK Hynix retreated 7.5%.
Weighing on the sector was a report by specialist website The Information, according to which Chinese company Shanghai Yuliangsheng has begun mass production of extreme ultraviolet (EUV) lithography machines, technology until now considered the exclusive domain of Dutch company ASML and crucial for the manufacture of the most advanced chips.
The news, if confirmed, could mark an important step forward for China's semiconductor industry, fuelling investor fears about the evolving competitive landscape in the sector.
