As AI Mania Wanes, US Futures and Korean Stocks Fall – Asia Market Wrap
Global risk sentiment softened as enthusiasm around the AI-driven rally continued to fade, weighing on equity markets across Asia and US index futures. Nasdaq 100 futures fell 0.9%, pointing to a third consecutive session of losses as investors rotated out of technology stocks following a record-breaking run higher.
Asian equities came under pressure, with MSCI’s regional benchmark dropping 1.4%. South Korea’s KOSPI, one of the world’s strongest-performing equity gauges this year and a key proxy for AI-related investment flows, tumbled 4.7%. Semiconductor heavyweight SK Hynix slid 8%, leading losses across the chip sector. European equity futures also pointed lower, with contracts indicating a modest 0.1% decline at the open.
Currency markets remained a focal point in Asia. The South Korean Won weakened to its lowest level since 2009, while the Indonesian Rupiah hovered near record lows against the dollar amid continued foreign outflows from local bonds and equities. In contrast, the Indian Rupee strengthened after policymakers announced measures aimed at attracting additional foreign capital.
In commodities, Brent crude recovered some recent losses, rising toward $95.50 per barrel. The move came after optimism surrounding a potential ceasefire between Israel and Lebanon eased slightly, although traders continued to monitor whether diplomatic progress could ultimately support broader negotiations involving the US and Iran.
