Asian Chip Stocks Plunge Amid Nvidia Anxiety and US Sanctions

Asian stock markets declined Tuesday, led by a sharp selloff in semiconductor shares. South Korea's KOSPI fell as much as 4.3%, while Taiwanese markets dropped to their lowest levels since August 7. Major chipmakers, including Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing Co, all experienced price drops as investors grew anxious ahead of an upcoming earnings report from Nvidia.

Market volatility increased after the United States government warned countries to sever business ties with Iran or face secondary sanctions, a move characterized as an "economic D-Day." Investors are also awaiting a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole conference to determine the future of the U.S. economic outlook.

In separate corporate news, union members at SK Hynix narrowly rejected a tentative wage agreement, adding internal pressure to the company as its stock value declined.