Image: Nikkei AsiaAsia's AI rally winners face a rising leverage problem - Nikkei Asia
• Stock markets in Japan, South Korea, and Taiwan experienced extreme volatility last week, swinging between record highs and sharp selloffs. • The instability is being driven by a "leverage problem," as retail investors increasingly use borrowed funds to speculate on AI-related stocks. • This trend matters because high leverage amplifies market swings, creating a fragile environment where small price drops can trigger massive forced liquidations.
asia.nikkei.com

