Asian chip stocks slump on AI worries as the IMF flags correction risk and two Fed officials back another rate hike
Asian stocks fell on worries about the AI boom (Reuters). Kospi dropped more than 5 percent on a chip sell-off (AP), and US chip stocks extended their slide (Reuters). The IMF flagged risks of an AI-market correction, war and debt (Reuters, BusinessWorld). The Fed’s Williams said one more rate hike this year is appropriate (FinancialJuice, Bloomberg), and Collins said another hike was on the table (Reuters). The Inquirer said the IMF sees Philippine growth lagging Asian peers. PSEi slipped on profit-taking (Philstar).
If the AI trade unwinds, it can pull down chipmakers, exporters and funds worldwide. Higher US rates tend to weaken the peso and raise borrowing costs.
Expect pressure on the peso and bank rates if the BSP follows with hikes. Savers and borrowers should watch their loan rates.
Treat the IMF’s correction warning as a risk, not a forecast. Watch the BSP’s next decision and whether Asian chip stocks stabilise.
DailyDrop Philippines edition No. 10 · Morning · WED., OCT. 14, 2026