South Korea’s equity benchmark plunged 5.5% on Tuesday, leaving the index roughly 38% below its June all-time high. Crypto also saw sharp swings, with bitcoin falling below $81,000 before rebounding above $84,000 and settling just above $83,000. Ether fell as low as $2,400.
The Asian selloff reflected mounting concerns about the AI trade. Broadcom CEO called current AI investing “casino-like”, knocking investor confidence and reported advances in memory-chip technology at China’s CXMT raised concerns of stronger competition for established chipmakers.
Samsung Electronics (005930) and SK Hynix (00060) led the declines, falling 7% and 10%, respectively.
Investors are also positioning ahead of Wednesday’s U.S. CPI report, another potential source of volatility. Headline inflation is forecast at 3.6% year over year, with core inflation at 2.5%. A headline reading in line with that forecast would…
