Odaily Planet Daily report: As the correlation between the Korean stock market and U.S. tech stocks continues to strengthen, global fund managers are treating the Korean market as a leading indicator of AI investment sentiment. Monitoring the price movements of Korean tech stocks such as Samsung Electronics and SK Hynix before market open has become a new industry norm.
Data shows that the 60-day correlation coefficient between the Korea Composite Stock Price Index (KOSPI) and the Nasdaq 100 has risen to 0.46, nearing its highest level over the past two years and approximately three times the five-year average of 0.16. Particularly during market downturns, Nasdaq’s sensitivity to Korean equity movements has significantly increased, with this metric reaching its highest level since 1990 on the 7th of this month.
Affected by concerns over the future demand for AI, the Korea Composite Stock Price Index plunged nearly 9% on the 13th of this month, causing SK Hynix ADR to drop more than 9% and dragging down the overall performance of the U.S. semiconductor sector. Industry professionals from JPMorgan Asset Management, PineBridge, and others noted that global investors now use the Korean market as a barometer for AI sector risk appetite, even continuing to monitor the performance of SK Hynix ADR and related ETFs after Korean markets close.
Ivan Feinseth, Chief Investment Officer of Tigris Financial Partners, said that the Korean market has become a core coordinate for global tech stock volatility alongside the Nasdaq and the Philadelphia Semiconductor Index, with Samsung Electronics, SK Hynix, and the KOSPI emerging as pre-market indicators of U.S. AI and semiconductor market risk sentiment.
However, since the June high, the KOSPI has fallen 25%, erasing approximately $1 trillion in market value, with Samsung Electronics and SK Hynix shares down more than 30% from their peaks. Leveraged trading has amplified market volatility, making the Korean stock market one of the most volatile among major global indices. (Bloomberg)