Business Times

• Asian stock markets declined at the open, with a general equity gauge falling 0.6% following a volatile trading session on Wall Street. • Technology stocks led the downturn, highlighted by a significant 1.8% drop in South Korea’s tech-heavy Kospi index. • The decline stems from renewed selling of megacap technology shares, which offset previous gains driven by bullish reports from chipmakers.

• The US Federal Reserve announced on June 24 that 32 of the nation's largest banks are well-positioned to continue lending despite a severe hypothetical economic downturn. • The annual "stress test" revealed that while banks' capital levels dropped by 1.6 percentage points, they remained above the minimum regulatory requirements. • These results indicate that the banking sector could absorb over US$700 billion in hypothetical losses without failing.

• South Korea's equity market is experiencing surging volatility, drawing comparisons to "meme-stock" trends due to the overwhelming dominance of Samsung Electronics and SK Hynix. • The concentration of market influence within these two semiconductor giants is identified as the primary driver of the current instability. • This volatility matters as it reflects a precarious reliance on a few massive tech firms, potentially distorting broader market valuations and investor behavior.

• Thailand's main stock index has surged over 20% in 2026 through Wednesday, outperforming regional benchmarks in Singapore and Vietnam while Indonesia saw declines. • The growth is largely driven by AI-related infrastructure, specifically power system makers like Delta Electronics (Thailand) and data center investments. • Other top-performing stocks contributing to this rally include Advanced Info Service, PTT, Gulf Development, and Airports of Thailand.

• Lazada has reduced its workforce by approximately 5% as part of a strategic review across its South-east Asian operations. • The layoffs impact employees across six key markets: Singapore, Malaysia, Thailand, Indonesia, Vietnam, and the Philippines. • Contrary to industry trends, reports indicate that these job cuts are not related to the implementation of AI initiatives.

• Singapore's listed technology manufacturers are experiencing significant gains and increased institutional inflows driven by the global artificial intelligence boom. • The growth is fueled by massive capital expenditure from global tech giants who are increasing demand for advanced semiconductors and chips. • This trend highlights Singapore's strategic position in the global tech supply chain, attracting investment into local manufacturing capabilities.

• AI chip giants TSMC, Samsung, and SK Hynix now comprise one-third of the MSCI Asia-ex-Japan index, creating significant concentration risks for investors. • This dominance has warped stock picking, forcing fund managers like Sam Konrad to sell their best-performing assets to prevent portfolios from becoming too top-heavy. • HSBC reports that TSMC is currently the most significant portfolio underweight among global emerging-market and Asian funds.

• Asia has a critical three-year window to establish global AI leadership by prioritizing digital sovereignty and rethinking digital borders. • To remain competitive, the region must integrate trust and security directly into the architecture of AI systems. • Singapore’s Model AI Governance Framework is highlighted as a vital regional blueprint for enhancing cybersecurity, data governance, and digital resilience.