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As U.S. Treasury yields surged, Asia-Pacific equity markets pulled back in 17 out of the past 20 instances over the last five years.
The rapid rise in U.S. Treasury yields is becoming one of the biggest risks to the AI-driven rally in Asian stock markets, highlighting the vulnerability of technology companies to elevated borrowing costs.
Express News | Domestic Capacity Expansion Faces External Pressure: South Korea and the US Engage in Strategic Rivalry Over Memory Chip Investments
Changxin's market capitalization returns to 4 trillion yuan, equivalent to 2.5 times that of Moutai. Is the AI memory dividend just beginning?
Changxin Technology has reached new highs. The core drivers are: the continuation of the AI-driven DRAM upcycle; accelerated domestic substitution, leading to a steady increase in Changxin’s market share; and major original manufacturers shifting capacity toward HBM, resulting in limited new traditional DRAM capacity. Meanwhile, Changxin’s capacity expansion has exceeded expectations, with an estimated additional 85,000 wafers per month by the end of 2026 compared to the end of 2025—4.25 times the combined new capacity of Samsung and SK Hynix over the same period.
SK Group's high-profile divorce case takes another turn as Chairman Chey Tae-won appeals the $643 million ruling
Chey Tae-won’s legal team stated on Friday that it has appealed the Seoul High Court’s July 24 ruling to the Supreme Court of Korea, describing the move as aimed at “minimizing negative impacts on shareholders and group management.” The compensation amount ordered in the ruling represents approximately 12% of Chey Tae-won’s personal wealth. Analysts believe this divorce settlement is unlikely to substantially erode Chey’s wealth or threaten his control over the SK Group.
South Korean stocks rose 11% this week, ending a seven-week losing streak, but with major institutional positions yet to be established, is a short squeeze imminent?
The KOSPI ended its seven-week losing streak this week, led by gains in chip stocks. However, hedge funds had previously significantly reduced their positions, leaving institutional holdings notably lagging behind the index's rise. As foreign capital flows back and technology stocks continue to strengthen, institutions with low exposure face performance pressure and may be forced to chase the rally, creating a positive feedback loop of "rising prices followed by position building." If the index continues to advance, this rebound could evolve into a short squeeze.
SanDisk bets on AI to reshape the flash memory market: Scale could surge from $60 billion to $500 billion, with mid-to-high double-digit revenue growth projected for FY2028–30
SanDisk projects that, for fiscal years 2028 to 2030, its non-GAAP gross margin will remain at approximately 80%, operating margin at around 75%, and adjusted free cash flow margin at about 50%. The company commits to returning 100% of remaining cash to shareholders after completing business investments. Its long-term target for bit growth is in the mid-to-high double digits, although salable bit capacity will be flexibly adjusted as needed to optimize profitability. It disclosed that long-term agreements with its top eight customers already cover approximately two-thirds of bit shipments for fiscal year 2028. The total addressable market (TAM) for enterprise flash memory is expected to reach 1.2 zettabytes by 2030.
South Korean stocks surged 22%, yet market participation remained virtually nonexistent.
Driven by both technical factors and capital flows, the South Korean stock market has completed a rare, rapid rebound. However, hedge funds were notably absent from this rally, creating potential for further upside driven by fear of missing out (FOMO). The KOSPI Index rose approximately 10% over just three trading sessions, marking a cumulative rebound of more than 22% from its low on July 30 and formally entering technical bull market territory. This is the first time the index has reached this threshold since its historic plunge in July. Meanwhile, volatility has nearly halved, foreign investors and domestic institutions have continued net buying, and market sentiment has clearly stabilized. However, hedge funds have currently significantly reduced their positions.
South Korean stocks rise 22% in 10 days, entering technical bull market; is the AI chip rally making a strong comeback?
South Korea's benchmark KOSPI index rose 3.6% on Thursday, marking a cumulative rebound of approximately 22% from its July 30 low and officially entering technical bull market territory. Samsung Electronics and SK Hynix were the core drivers of this rebound, with both heavyweight chip stocks gaining nearly or more than 5% in a single day.
South Korean regulators to require new investors in single-leverage ETFs to complete simulated trading exercises
On August 12, the Financial Services Commission of South Korea issued new regulations requiring new investors to complete at least five days of free simulated trading, totaling five hours, on the Korea Exchange website before purchasing a single leveraged ETF. The rules will take effect on August 19. Previously, the minimum cash deposit for individual stock leveraged ETFs was raised to KRW 30 million, and the mandatory training period was extended to three hours.
First Direct Investment in South Korean Equities! Korean Media Reports Temasek Plans to 'Buy the Dip' in Samsung and SK Hynix
Singapore's sovereign wealth fund Temasek plans to make its first direct investment in the South Korean equity market, intending to directly establish positions in Samsung Electronics and SK Hynix using its own capital. Temasek has characterized memory chips as the most undervalued segment of the AI value chain and aims to increase the share of AI-related assets in its portfolio to 15% over the next five years. If successfully executed, this move would complete its exposure to memory chips, complementing its existing holdings in NVIDIA, Taiwan Semiconductor, ASML, and OpenAI.
Deputy Governor of the Bank of Korea: Inflation remains persistently above target; further rate hikes are expected.
Ryoo Sangdai, Senior Deputy Governor of the Bank of Korea, stated that core inflation remains persistently above the 2% target, and further rate hikes are still under consideration. South Korea’s July CPI rose 2.8% year-on-year, with core CPI increasing to 2.6%. Second-quarter GDP grew 0.6% quarter-on-quarter, and exports in July surged nearly 70% year-on-year after adjusting for working days. The resilience of both the economy and inflation supports a potential rate hike in August.
Express News | South Korea's exports reached a record high of USD 275.5 billion in the second quarter, up 57.3% year-on-year.
Express News | South Korea Plans to Enact Special Legislation to Clear Obstacles for Three Key Projects
South Korea announced the establishment of a new fund worth 5 trillion Korean won, focusing on investments in semiconductor materials, components, and equipment.
The South Korean government announced the establishment of a KRW 5 trillion semiconductor special fund, primarily targeting chip materials, components, equipment companies, and fabless design firms with growth potential. An additional KRW 5 trillion in trade financing will be provided to support suppliers, and KRW 1 trillion will be invested over ten years to foster stronger collaboration between large enterprises and small and medium-sized suppliers.
Express News | The Office of the President of Korea announced the establishment of a new fund worth 5 trillion Korean won (approximately USD 3.5 billion), focusing on investments in promising sectors of semiconductor materials, components, and equipment.
Will Korean equities struggle to stage a V-shaped rebound? Institutions anticipate a 'square-root-shaped' gradual recovery.
① Hana Securities released a report stating that following the sharp decline in the KOSPI, a V-shaped recovery is unlikely; instead, the market will follow a square-root-shaped recovery pattern. ② Korean equities are now trading below their valuation trough during the global financial crisis, while corporate earnings expectations continue to be revised upward, creating a clear divergence between stock prices and fundamentals. ③ The report notes that the current rebound will initially be driven by valuation recovery and favorable interest rate conditions to establish a market bottom, followed by gradual upward momentum supported by improving corporate earnings and returning foreign capital.
Korean stocks slump, U.S. equities feast! A wave of 'wounded' Korean investors returns to Wall Street's embrace
① The sharp decline in South Korean equities is undermining the government's efforts to lure back domestic retail investors—colloquially known as the 'ant army'—into local markets, triggering the largest surge in Korean investor purchases of U.S. stocks in six months; ② According to data from the Korea Securities Depository, Korean investors bought $4.6 billion worth of U.S. equities in July, when the KOSPI index fell by 22%. This figure significantly exceeds the monthly average of $2.7 billion recorded in 2025.
Report: NVIDIA plans to reduce the memory configuration of Rubin Ultra to address shortages of high-end HBM.
The AI infrastructure boom is pushing supply chains to their limits. According to The Information, NVIDIA is evaluating a rather aggressive adjustment—launching a version of its next-generation AI GPU, Rubin Ultra, with less memory than originally planned—to alleviate production pressures caused by shortages of high-end high-bandwidth memory (HBM). This means that even NVIDIA, which dominates the GPU market, must now strike a balance between product specifications and supply capabilities. This shift not only underscores that HBM availability has become one of the most critical bottlenecks in the AI supply chain, but also signals that
Following South Korea's tightened regulation on leverage, domestic investors have flocked to U.S. triple-leveraged ETFs.
Following South Korea's tightened regulation of single-stock leveraged ETFs, trading volumes of the 16 domestically listed single-stock leveraged and inverse ETFs plummeted by nearly 90%. Meanwhile, net Korean purchases of U.S. equities surged from USD 630 million in June to USD 46.4 billion in July, with triple-leveraged products such as SOXL and TQQQ becoming new favorites—resulting in actual risk exposure increasing rather than decreasing. The 'balloon effect' of South Korean regulation is already evident, with academics questioning the policy’s real-world effectiveness.
South Korea's stock market: crash or golden opportunity? Goldman Sachs maintains overweight stance; regulators refute bearish sentiment
Amid external skepticism over the investability of the South Korean market, Goldman Sachs remains bullish on the AI chip supercycle, projecting an 80% upside potential. South Korean regulators are actively working to restore market confidence.