BENGALURU: South Korean stocks fell on an otherwise bright day for the rest of emerging Asia on Monday, as concerns over stretched valuations in AI-linked shares resurfaced.
In the currency market, Indonesia’s rupiah breached the 18,000 level for the first time since mid-June. The South Korean benchmark KOSPI fell 3 percent after having surged as much earlier in the session, reflecting the volatility that has been plaguing the AI tech-heavy market, which is still up 91 percent in 2026.
Investors are looking beyond the immediate impact of Middle East tensions and questioning whether enthusiasm for AI can continue to drive equity markets higher.
“In a market running at peak concentration and peak optimism, you don’t need a fundamental shift to trigger a sharp correction, you just need a reason to reduce,” said Dilin Wu, research strategist at Pepperstone.
Chipmaker SK Hynix shares sank 4 percent with the company launching a US listing to raise about USD28 billion, according to regulatory filings, in one of the world’s largest share sales.
Investor attention is also turning to the upcoming earnings season, with the AI boom expected to underpin another quarter of strong profits for technology companies.
The broader MSCI Emerging Markets Asia Index, in which the KOSPI accounts for over a quarter of the weight, slipped 0.1 percent. Crude prices edged lower after OPEC+ agreed to raise output targets by 188,000 barrels per day from August, following similar increases in June and July.
Fesa Wibawa, an investment manager at Aberdeen Investments, said lower oil prices were a clear positive for emerging Asia, helping to improve terms of trade, ease inflation pressures and support regional assets.
Philippine stocks rose 1.9 percent, supported by gains in conglomerate Ayala Corp and Bank of the Philippine Islands, which both advanced over 3 percent.
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