KOSPI rout jolts Asian markets as Apple turns AI boom into cost scare

Asian markets are learning that the AI boom has a price tag.

A week that began with record highs ended with investors questioning whether surging demand for memory chips is becoming an inflation problem for technology buyers.

Apple’s decision to raise prices on iPads and MacBooks rattled sentiment, even as Micron’s earnings showed that chipmakers remain on the right side of the boom.

The result was a sharp pullback across Asia, a firmer dollar, renewed pressure on the yen and a more complicated read on risk before the quarter closes.

Apple turns AI demand into a cost shock

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 3.8% on Friday, leaving it down 5.4% for the week after hitting a record high on Monday.

Japan’s Nikkei dropped 5%, while South Korea’s KOSPI slid 8.2%. Chinese blue chips and Hong Kong’s Hang Seng also moved lower.

The trigger came from Apple, whose shares fell 6.1% overnight after it raised prices on iPads and MacBooks to offset soaring memory and storage costs.

The move erased roughly $250 billion from its market value and reminded investors that AI infrastructure spending can hurt as well as help.

Micron’s 16% surge to a record high showed where the profits are flowing.

Apple’s price hikes showed where the costs are landing. That split is now central to the market debate.

Yen weakness keeps Tokyo on alert

Currency markets added to the defensive tone.

The yen traded around 161.82 per dollar, close to its weakest level in four decades and beyond the 160 mark widely seen as a possible intervention zone for Japanese authorities.

The currency found little support from US data. Inflation came in broadly as expected, while revised figures showed the US economy grew faster in the first quarter because imports were marked lower.

The softer detail was consumer spending, which nearly stalled and raised questions about second-quarter momentum.

The dollar index held near 101.46, close to its strongest level since May 2025.

Treasury yields were steady after easing overnight, with two-year yields near 4.125% and 10-year yields around 4.402%.

Oil relief fails to calm markets

Oil provided some relief, but not enough to turn sentiment.

Brent slipped 0.25% to $75.07 a barrel after bouncing overnight on reports that a vessel was attacked while leaving the Strait of Hormuz.

More stranded tankers have crossed the waterway with military escorts, easing supply fears. Yet Iran’s warning against unapproved routes means the risk premium has not disappeared.

Precious metals remained under pressure from the stronger dollar and rate concerns.

Spot gold hovered near $3,992 an ounce after an 12% monthly slide, while silver was around $56.30, down roughly 25% for the month.