South Korea’s Kospi index is trading with extreme volatility, with daily swings reaching 10% as the market rides a wave of artificial intelligence investment.
The benchmark has touched record highs, driven largely by the country’s dominant semiconductor sector, but the magnitude of the intraday moves is raising questions about the sustainability of the rally.
Handelsavisen previously reported that the Kospi reached an all-time high, capitalizing on the global AI investment cycle.
The surge is being fueled by record levels of leverage, according to reports from Kurzy.cz.
The Czech financial outlet noted that the AI-driven rally has created a highly leveraged environment, describing the situation as a "chip boom on steroids." This leverage amplifies both gains and losses, contributing to the sharp price fluctuations seen in recent sessions.
Handelsavisen previously reported that the Kospi reached an all-time high, capitalizing on the global AI investment cycle.
Asian equity markets have posted broad gains, with investors largely ignoring geopolitical concerns in the Middle East to focus on technology sector strength.