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Asian markets surged as AI optimism returned after strong Microsoft and Amazon earnings. Kospi jumped 16%, Nikkei rose 6%, while SK Hynix and Samsung soared over 25% and 20%, respectively.

#KospiJumpsRecord15%

USD/JPY plunged, fueling speculation of Japanese currency intervention. The pair dropped 2.38% intraday to a low of 159.52.

Samsung Electronics posted a more than 250-fold jump in Q2 chip profit and warned memory shortages could continue through 2028 as AI demand outpaces supply. The company signed long-term deals with major data-centre firms, while its mobile division slipped into a quarterly loss due to soaring chip costs.

South Korea's KRX is reviewing the technical feasibility of a temporary short-selling ban and tighter price limits to curb volatility, though no decision has been made yet.

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🚨 BREAKING: AI Stock Crash Hits Asian Hedge Funds

• Goldman Sachs says Asia-focused fundamental long-short equity hedge funds are suffering their largest single-month drawdown on record, with average losses of 18.6% as of July 28.

• The funds were among the best performers in the first half of the year after major bets on AI hardware giants SK Hynix and Samsung Electronics, with some posting gains of more than 100%.

• Since peaking on July 22, when year-to-date returns reached around 40%, the group has surrendered roughly 21 percentage points amid a broad selloff in AI-related stocks.

• Goldman said crowded AI trades were the main driver of the losses, while hedge funds with larger AI exposure suffered steeper declines. Managers have cut risk for eight consecutive trading sessions, with the five-day reduction in exposure reaching a record high.

🚨 BREAKING: Republicans Weigh U.S. Debt Ceiling Increase

• Politico reported that Republicans are considering a preemptive increase in the U.S. debt ceiling to avoid a fiscal cliff during a possible Trump term.

• The White House has reportedly floated raising the debt limit to $41.1 trillion through party-line spending bills ahead of the November midterm elections.

• Republicans previously raised the debt ceiling by $5 trillion, while U.S. public debt now stands at about $39.7 trillion.

• An independent forecaster estimates the X-date to avoid a U.S. default could fall between next summer and early 2028, overlapping the start of the presidential primary season.

🚨 BREAKING: Wall Street Tightens Pressure on Leveraged AI Bets

• Goldman Sachs and JPMorgan have reportedly issued margin calls to hedge funds with heavily leveraged AI positions, according to Hedgeweek.

• Fitch Ratings warned the AI boom is becoming a systemic credit risk, citing $182 billion in Big Tech bond issuance and capital spending outpacing cash generation.

• Credit default swap (CDS) spreads for major tech firms have more than doubled since early 2025, while CoreWeave's CDS pricing implies about a 50% probability of default over the next five years.

• Wall Street lenders are increasing risk controls and demanding more collateral from hedge funds with concentrated exposure to AI-related assets.

🚨 South Korea Studies Market Stabilization After Crash

• Finance Minister Koo Yoon-cheol apologized after two circuit-breaker halts in Korean stocks, saying the government regrets introducing single-stock leveraged ETFs without sufficient review.

• He said officials are studying market-stabilization measures and may tighten rules governing single-stock leveraged ETFs.

• The KOSPI plunged as much as 12% intraday after opening down over 6%, before trimming losses to around 8%.

• SK Hynix fell as much as 17% following its earnings report before recovering to a loss of roughly 8%.

🚨 BREAKING: South Korea's Market Meltdown Deepens

• South Korea's KOSPI plunged over 12% intraday, falling below 5,300 amid heavy selling.

• Retail investors faced about KRW 1.7 trillion ($1.2 billion) in forced liquidations on Wednesday, while institutions are reportedly waiting for selling pressure to ease before buying.

• U.S. futures weakened, with Nasdaq futures down 1%, S&P 500 futures down 0.3%, and Dow futures down 0.2%.

• Japan's Nikkei 225 also slid as much as 3%, touching 60,490.58 intraday.

🚨 BREAKING: South Korea Halts Trading After Market Crash

• Korea Exchange triggered a 20-minute circuit breaker on the KOSPI, after the KOSDAQ had already activated its own trading halt.

• The KOSPI plunged another 8% on Wednesday after a 10% crash on Tuesday, leaving it down over 30% in July, on track for its worst monthly decline on record.

• SK Hynix has plunged about 25% in two sessions after disappointing Q2 results, while investors await earnings from Samsung Electronics and major U.S. tech companies.

• Japan's Nikkei 225 also fell, hitting an intraday low of 61,000, down 2.23%.

#KOSPITriggersSidecarOnTechSelloff

🚨 SK Hynix Extends Sell-Off Despite Strong Q2 Results

• SK Hynix shares fell nearly 12% after reporting Q2 operating profit of KRW 60.54 trillion ($41.6 billion), up 557% YoY but below the KRW 63.55 trillion analyst consensus.

• The stock had already dropped 14.7% the previous day and has retreated sharply from its June record high.

• The company said expanding AI infrastructure continues to drive strong demand for memory chips and related products.

• Investors remain concerned about overbought valuations, the memory chip cycle and the sustainability of AI-driven demand.

🚨 China's CXMT Joins MSCI Index After Record IPO

• MSCI will add CXMT Corporation to the MSCI China All Shares Index effective 10 August, just days after its blockbuster IPO.

• CXMT raised $8.6 billion in Asia's largest IPO of 2026, with its shares surging on debut to a market value of around $487 billion.

• The company has become China's most valuable listed firm, surpassing major state-owned banks, according to Reuters.

• With a 7.67% global DRAM market share in 2025, CXMT is emerging as a major rival to Samsung Electronics, SK Hynix and Micron.

🚨 BREAKING: South Korea's KOSPI Erases Early Gains

• South Korea's KOSPI is currently down 2.1% at 5,900, its lowest level since April, after rallying over 3% intraday.

• The index is extending losses after Tuesday's 10.8% plunge, its biggest one-day drop since March 4.

• SK Hynix is down more than 5%, while Samsung Electronics has slipped nearly 1%.

• Kiwoom Securities says the KOSPI is in record oversold territory and expects a rebound on dip-buying, hopes for U.S.-Iran talks and easing Fed concerns.

Oman has proposed a joint regional framework to manage the Strait of Hormuz, according to Refinitiv citing Gulf sources. The user-funded plan, modeled on the Malacca Strait system, would support navigation safety, environmental protection and search-and-rescue operations while ensuring Iran is not the sole controller of the strategic waterway.

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China's CXMT surged about 470% in its Shanghai debut, becoming China's most valuable listed company. NVIDIA announced a $500B+ partnership with SK Group and is reportedly pursuing $750B in AI infrastructure deals, while Samsung, SK Hynix and Micron fell sharply as the Philadelphia Semiconductor Index stayed in bear-market territory.

#SKHynixPlunges13%AsKOSPIDrops10%

🚨 KOSPI Becomes Global AI Market Proxy

• KOSPI's 60-day correlation with the Nasdaq-100 has climbed to around 0.50, the highest since 2021, as AI spending links U.S. tech giants with Korean chipmakers.

• Samsung Electronics and SK Hynix now account for more than half of the KOSPI's weight, effectively making the index a semiconductor proxy, according to Futurum Group.

• Recent sharp swings in Korean chip stocks have led global investors to treat KOSPI as a key indicator of AI investment flows.

• Analysts warn that stronger correlation with U.S. tech reduces diversification benefits and could leave South Korea more vulnerable if hyperscalers cut AI spending.

🚨 BREAKING: South Korea Loan Rates Climb After Rate Hike

• Bank of Korea data showed banks' average new loan rate rose 12 bps to 4.31% in June as market rates increased.

• Corporate lending rates climbed 14 bps to 4.27%, while new household loan rates rose 4 bps to 4.50%.

• Housing mortgage rates increased to 4.36%, the highest since November 2023, while non-mortgage household loans jumped 23 bps to 5.72%.

• The central bank said lending rates have been rising alongside market rates after its first interest rate hike in 3.5 years.

Japan and South Korea chip stocks slumped as NVIDIA-related concerns and rising competition hit AI shares, with SK Hynix plunging nearly 11% and the KOSPI dropping up to 7.6%.

#SKHynixSlumps11%OnAIChipSelloff

🚨 BREAKING: U.S. Strategic Oil Reserve Falls to 1983 Low

• Refinitiv, citing U.S. DOE data, said Strategic Petroleum Reserve (SPR) crude inventories fell 3.7 million barrels last week.

• SPR holdings dropped to 307.7 million barrels, the lowest level since March 1983.

• The drawdown is part of an agreement to release 172 million barrels from the reserve.

🚨 BREAKING: Trump Pushes for Lower Rates, Signals Iran Talks

• President Trump praised Fed Chair Kevin Warsh, calling him "outstanding," and said he is confident Warsh will do the right thing.

• Trump said U.S. interest rates should be lower, adding the country should have the world's lowest rates as costs are falling.

• Trump said the U.S. is in "good talks" with Iran and that "it's very possible something will happen" on a potential agreement.

• He added the U.S. will seek satellite imagery from Russia to assist on Iran and said prices will fall sharply once the war ends.