Svmuu News: South Korea’s KOSPI index fell 5% as investors rushed to close out AI-related positions. The index is currently extending its four-week losing streak and has fallen 28% from its all-time high on June 22. This sell-off highlights investors’ anxiety over the market’s growing reliance on leveraged bets on AI chip manufacturers. South Korea has become a key barometer of enthusiasm for the AI boom, and as market sentiment turns negative, the country is feeling downward pressure.
“Although South Korea remains our top-pick market in our allocation model, we are downgrading our rating from ‘Overweight’ to ‘Neutral’ due to ongoing market volatility,” said Citigroup analysts, who maintained their 10,000-point target for the South Korean KOSPI index. (Jin Shi)