South Korea's benchmark KOSPI index plunged over 7% on Tuesday, erasing recent gains driven by AI optimism. Investors rushed to lock in profits after Samsung Electronics announced strong quarterly earnings, triggering a broad sell-off in tech stocks. The market experienced trading suspensions and significant drops in major companies like Samsung Electronics and SK Hynix.
The German Dax opened almost unchanged at 24,860 points, with weak global cues from the US and Asia dampening sentiment. The index closed down 1.3% on Wednesday, falling below the 25,000 mark. Market sentiment is dominated by the Iran war and the AI rally.
India's stock market has fallen from 5th to 7th largest globally, driven by a record exodus of foreign capital and a lack of participation in the AI-led rally benefiting markets like Taiwan and South Korea. Concerns over valuations, capital gains tax, and geopolitical conflicts have impacted Indian equities.
South Korean stocks reached a new all-time high on Monday, fueled by strong gains in AI-related companies. The Korean won also strengthened against the U.S. dollar. Chipmakers rallied on expectations of continued AI-driven semiconductor growth and potential partnerships.
The Nikkei 225 index closed at a record high of 63,339.07 on May 22, driven by optimism over the end of the US-Iran conflict and a strong AI sector rally. Major Japanese tech and manufacturing firms saw significant gains.
South Korea's KOSPI index reached a record high of 7,981.41, up 1.75%, driven by hopes for eased US-China tensions during Trump's visit and a rally in AI-related stocks, despite inflation concerns and stalled US-Iran talks.
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