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<Asia> Asian Markets Broadly Weaker; KOSPI Once Slumps 7%, KRW Falls 0.8% to Fresh Low Since 2009; Nikkei Extends Drop Nearly 1,000 pts
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Investors are awaiting the US May nonfarm payrolls data due tonight. Overnight (4th), the three major US stock indices were mixed. With Middle East tensions escalating, major Asia-Pacific markets broadly declined this morning (5th). Broadcom Inc. (AVGO.US) tumbled after its results, prompting funds to rotate out of AI-related stocks into defensive plays. Mainland China’s A-share markets diverged in early trading. The Shanghai Composite edged up less than 0.1%, while the Shenzhen Component fell 0.55%. Hong Kong stocks last stood at 25,132, down 120 points or nearly 0.5%, with turnover at HKD85.7 billion. Taiwan’s market dropped 779 points or 1.7% to 44,897. TSMC slipped 0.2%, while Hon Hai fell 3.4%. Wistron, MediaTek and Delta Electronics declined 2% to 3.7%, and Largan Precision slid 5.5%. Amid reports that the Bank of Japan is considering a 25 bps rate hike this month, the Nikkei index extended losses by 947 points or 1.4% to 66,522. Chip, semiconductor and precision electronics shares were under pressure. Murata Manufacturing fell 4.1%, while Sumco, Socionext, Tokyo Electron, Taiyo Yuden and Renesas Electronics dropped 6.1% to 10.1%. SoftBank and Kioxia declined 1.2% to 2%. The KRW plunged 0.8% to 1,545.75 per USD, hitting a fresh low since 2009. South Korea’s KOSPI at one point slumped 7% intraday to a low of 8,038, and was last at 8,179, down 459 points or 5.3%. The Korea Exchange triggered a circuit breaker after KOSPI 200 futures fell 5%, halting program trading for five minutes. Heavyweights dragged the market lower, with Samsung Electronics down 4.4% and SK Hynix sliding 6.4%. Hanwha Aerospace fell 2.6% and Hyundai Motor dropped 4.7%. Seoul Semiconductor, LG Display and Samsung SDI each declined more than 6%. As of Thursday, the KOSPI had more than doubled year to date. Gains were concentrated in the two chip giants, leaving the market vulnerable to a sudden slowdown in AI-driven trading momentum. Retail participation has also been weakening, while surging margin loans face risks from potential rate hikes by the Bank of Korea. Analysts were cited as saying the rise of leveraged exchange-traded funds (ETFs) could further amplify reversals. According to Korea Exchange data, Samsung Electronics and SK Hynix account for 54% of the KOSPI’s market capitalization and about half of the index’s average daily turnover in May. Nearly three-quarters of the KOSPI’s gains so far this year came from these two companies. Single-stock leveraged ETFs linked to the pair have intensified concerns. Exchange data showed that in the first five trading days after their May 27 launch, the four most popular single-stock ETFs accounted for 21% of total ETF turnover in South Korea. Singapore shares were steady, while Malaysia’s KLCI and the Philippines’ PSEi rose 0.8% and 1.4%, respectively. Indonesia’s IDX rebounded from around a five-and-a-half-year low, edging up 0.3%. Australia’s S&P/ASX 200 fell 0.5%, while New Zealand’s NZX 50 gained 0.3%. (da/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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