- Asian tech stocks staged a cautious recovery after a global tech-led selloff, with the MSCI Asia Pacific rising nearly 1% after a 3.6% slump on Tuesday.
- Samsung Electronics shares rose over 9% after falling 12% in the previous session, bolstered by reports of a potential buyback.
- KOSPI plummeted 9.99%, marking its steepest drop in over three months, as overseas investors sold chipmakers following regulatory signals indicating an overheated market.
- Regulatory caution was issued regarding leveraged ETFs, with the head of South Korea's market watchdog stating that the government had been too hasty in approving these funds.
- Despite the recent 10% fall, the KOSPI index is up over 94% for the year, significantly outperforming the Nasdaq Composite.
- Retail investors have invested a record $39 billion into stock-focused ETFs since the start of the year, indicating strong market participation.
- Market volatility has increased, with regulators warning investors about the risks associated with leverage as margin debt reached a record high in June.
Asian tech stocks saw a cautious recovery after a significant global selloff, with the MSCI Asia Pacific index rising nearly 1% following a 3.6% drop on Tuesday.12
Samsung Electronics led the rebound, with shares climbing over 9% after a 12% decline, while the KOSPI index fell nearly 10%, marking its steepest drop in over three months.34569
The KOSPI closed down 910.71 points at 8,203.84, as regulatory concerns about the overheated chip sector prompted overseas investors to sell.
“The selloff in South Korean technology stocks was more likely a pause after a near 100% rally in the Kospi this year,” said Wedbush Securities’ Dan Ives, highlighting the ongoing demand for enterprise AI.
Despite the recent volatility, the KOSPI remains up over 94% for the year, significantly outpacing the Nasdaq Composite.
The Financial Supervisory Service (FSS) issued a consumer warning regarding increased market volatility, as margin debt reached record highs.11
“Retail cash equity volumes ran 60% above the 2025 average,” according to Citadel Securities, indicating strong retail participation in the market.
The broader memory-chip market is projected to exceed $1.3 trillion by mid-next year, but risks of price corrections loom due to potential supply surges.
“Asian tech stocks have shown signs of recovery following a global selloff, with Samsung shares rising 9%. However, the KOSPI index experienced a significant drop of nearly 10% due to regulatory concerns over leveraged ETFs.”
CNBC