Odaily Planet Daily report: Under the weight of a sharp decline in South Korea’s stock market, emerging market equities and currencies declined for a third consecutive trading day. The MSCI Emerging Markets Index fell 1.7% to 1,728.66, while South Korea’s Kospi index plunged as much as 7% intraday. The sell-off was concentrated in the semiconductor sector, with Samsung Electronics and SK Hynitz leading the decline—these two companies together account for more than half of the Kospi’s market capitalization. The shift in investor sentiment followed Broadcom’s weaker-than-expected outlook for AI chip sales.
Charu Chanana, Chief Investment Strategist at Saxo Markets, said that stronger-than-expected U.S. non-farm payroll data could provide another reason for investors to reduce their crowded AI trades. The market is currently closely monitoring this data to gauge the Federal Reserve’s future interest rate path.