Asian equities experienced a sharp decline, led by Japan, South Korea, and Taiwan, amid a worsening semiconductor sector downturn. Chinese stocks also weakened, despite a notable IPO. In response to a significant selloff in its shares, SK Hynix announced a record-breaking 40 trillion won ($28.6 billion) share buyback program. The company believes its intrinsic value is not reflected in its current stock price due to factors like rising bond yields and inflation impacting the semiconductor industry. SK Hynix's management expressed concern that the stock's decline has become disconnected from the company's fundamentals. This buyback is intended to arrest the six-week selloff that has halved the company's market value and to improve shareholder value. The program involves purchasing treasury shares in the open market. SK Hynix also stated its financial health targets remain on track and reaffirmed its commitment to a stable financial structure. The announcement came after SK Hynix's stock dropped nearly 10%, alongside a significant decline in Samsung Electronics and the broader Kospi index. Analysts suggest rising energy prices and interest rates are driving a rotation out of semiconductor stocks. The SK Hynix buyback is the largest treasury share cancellation by a South Korean-listed company, aligning with government efforts to address the "Korea discount." Analysts believe this buyback is likely the beginning of further capital returns, including potential dividend increases and future share buybacks.