Leveraged ETFs Tumble as KOSPI Plunges Over 5% on AI Spending Concerns

Stock News11:08

South Korean leveraged ETFs fell sharply in unison, with the CSOP SK hynix Daily Leveraged 2X Product (07709) dropping 14.52% to HK$21.9, while the CSOP Samsung Electronics Daily Leveraged 2X Product (07747) declined 10.76% to HK$47.28.

Asian semiconductor stocks came under heavy selling pressure on Friday, with South Korea's KOSPI index widening its losses to over 5% this morning. The Korea Exchange activated its SIDECAR mechanism, halting program selling on the KOSPI. Among individual stocks, SK hynix plunged 8%, while Samsung Electronics fell more than 5%.

The selloff was triggered by Alphabet's disappointing revenue figures and its warning about elevated spending, which sent its shares tumbling by the largest margin in history. Amazon's massive capital expenditure figures and Intel's lower-than-expected sales forecast due to weak demand for PC processors further intensified investor concerns about the high financing costs of the AI boom and whether these enormous investments will generate adequate returns.

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