Lates News

Emerging market assets fell for the third consecutive trading day led by the South Korean stock market as investors' enthusiasm for artificial intelligence stocks waned. The MSCI Emerging Markets Index fell 1.7% to 1728.66 points, while the South Korean KOSPI index plummeted 7% on Friday. Following Broadcom's AI chip sales prospects falling short of market expectations, chip manufacturers such as Samsung Electronics and SK Hynix led the decline, with the combined market value of these two companies accounting for more than half of the South Korean composite index. Emerging market stocks and currencies are expected to record weekly declines this week after rising for two consecutive weeks. Charu Chanana, Chief Investment Strategist at Shengbao Market, said, "Broadcom is a trigger that reminds the market how overly invested expectations have become in AI. Investors have already priced in many perfect expectations, so even a minor disappointment could lead to a significant revaluation. Stronger-than-expected non-farm payroll data could become another excuse to reduce AI investments."