South Korea’s Kospi swings now steer global AI chip stocks
Why it matters: The Kospi’s 60-day correlation with the Nasdaq 100 has climbed to 0.46, near a two-year high and almost triple its five-year average.
South Korea’s stock market has become an early signal for global AI and semiconductor trading, with sharp moves in Samsung Electronics and SK Hynix rippling into Wall Street and other major markets. Investors in London, New York and Tokyo are increasingly watching the Kospi before their own sessions begin, reflecting Seoul’s bigger role in setting risk appetite.
The shift has come with bigger volatility. During the week ended July 19, the Kospi fell nearly 9% on Monday as doubts about future AI demand hit local shares, and the weakness spread to the United States. SK Hynix’s US-listed shares dropped 9.3%, pulling down other chip stocks. Bloomberg data showed the Kospi’s 60-day correlation with the Nasdaq 100 reached 0.46, close to the highest in two years.