Stock Index

From July 1 to 16, foreign investors net sold $8.1 billion of South Korean stocks as the KOSPI fell 19.6%. Over the same period, they net bought $399 million in South Korea-listed equity ETFs, concentrating on leveraged and inverse products tied to the KOSPI 200 as well as semiconductor-themed ETFs. Samsung Electronics leveraged ETFs saw net inflows, while SK Hynix leveraged ETFs posted sizable net outflows. The positioning has been interpreted as volatility-hedging rebalancing rather than a one-way bearish bet.

The S&P 500, Nasdaq 100 and Dow have pulled back more than 5% from their year-to-date highs, even as bank and technology earnings come in strong and the odds of a Federal Reserve rate hike ease. Selling pressure has been led by a broad AI-related retreat after Moonshot released its Kimi K3 model, stoking concerns about whether U.S. leaders are still ahead. Hardware-linked names such as Micron and Nvidia have fallen more than 20% from their year-to-date highs, while a weak Netflix report added to the risk-off tone.

U.S. stocks opened lower on Friday, with the Nasdaq Composite down 1.81%, the S&P 500 off 1.14%, and the Dow Jones Industrial Average lower by 0.24%. Markets are reassessing this year’s AI-driven rally, weighing on chip shares. Netflix issued a weak forecast, deepening concerns about lofty valuations in technology stocks. That outlook served as the immediate trigger for the latest pullback.

The SOXX/IGV ratio has fallen 19.95% month-to-date, putting it on track for its worst month on record back to 2001. Within SOXX, all holdings are down for the month except Nvidia, and the median component has dropped 22.42%, while IGV is up roughly 4% in July. SOXX’s forward P/E has slipped to 23.8 from a two-year average of 24.8, and IGV trades at 20—well below its historical mean. Drivers cited include profit-taking, concerns that hyperscalers’ AI capex growth may slow, and the impact of cheaper open-weight models on the chip-demand narrative.

Indian equities rose on Friday, with the Nifty 50 up 0.85% to 24,277.45 and the Nifty Bank gaining 0.86% to 58,074.60. IT stocks led advances, as TCS, Tech Mahindra and Infosys climbed, alongside bank heavyweights including Kotak, ICICI and HDFC Bank. Metal shares and some pharmaceutical names eased, but overall market breadth remained positive.

TSMC’s higher capital spending outlook sent its shares down 5.26% in a single session, adding to selling pressure in tech after Netflix results missed expectations. Japan’s Nikkei has fallen more than 12% in less than a month, pushing it toward technical correction territory. Brent crude rose above $85 a barrel, stoking inflation and rate-hike worries, while the Philadelphia Semiconductor Index has slumped 18.91% in nearly three weeks, nearing bear-market levels.

Asia-Pacific chip shares sold off sharply, with Taiwan Semiconductor Manufacturing Co. falling even after reporting earnings that beat estimates and Japan’s Kioxia Holdings Corp. sliding 16%. The Philadelphia Semiconductor Index is down about 19% from a June peak, while Japan’s Nikkei 225 and Taiwan’s Taiex posted their biggest single-day drops in more than a year. Nasdaq 100 futures fell 1.6%, and Brent crude slipped 0.5% even as it remained up 10% for the week. Investors have been questioning whether AI-related capital spending will deliver returns, adding pressure to tech valuations.

SpaceX scrubbed the Starship Flight 13 attempt after an automated abort triggered when four Raptor engines failed to ignite with three seconds left in the countdown, leaving the rocket on the pad. The setback came days after the US Federal Aviation Administration completed its review of a prior booster return failure and cleared the company to proceed with the flight. SpaceX shares closed at $131.11, slipping below the IPO price for the first time and extending a roughly 13% decline since the stock joined the Nasdaq 100.

Japan’s Nikkei 225 tumbled 4.40% to 63,896.48 in Friday morning trade, marking its sharpest single-day drop in recent weeks. The decline was led by heavy losses in chip-related stocks after Taiwan Semiconductor Manufacturing Co. raised its capital spending plan, stoking concerns about sector overheating and the durability of earnings. Geopolitical tensions in the Middle East further dampened risk appetite.

Japanese equities saw a sharp selloff, with the Nikkei 225 falling 1915 points in a single session. Memory chipmaker Kioxia (KIOXIA) slumped, weighing on AI semiconductor-related shares. The U.S. dollar traded near 162 yen. The drop was attributed to selling pressure across the global AI chip sector after TSMC earnings, alongside rapid short-covering in Japan that accelerated the selling.