Global South

• South Korea’s $4 trillion equity market has emerged as a critical early indicator of global risk appetite and AI sentiment. • Market swings in semiconductor giants Samsung Electronics Co Ltd and SK Hynix Inc are now driving trends across global AI and chip stocks. • Fund managers in major financial hubs, including New York, London, and Tokyo, are increasingly monitoring the Kospi index before their own domestic markets open.

• China is deploying AI-driven solutions across the Global South to enhance economic development and public safety, as highlighted in a Xinhua report from Shanghai on July 18. • In Cambodia's Takeo Province, AI technology is being utilized in the aquaculture sector, where drones are used to automate feeding rounds for shrimp ponds. • These initiatives demonstrate China's strategy to export technological infrastructure to developing nations to improve agricultural efficiency and industrial productivity.

• South Korea is experiencing a stock market frenzy driven by AI speculation, leading to sharp price swings and increased volatility. • Market movements are being fueled by leveraged investment products rather than corporate fundamentals, unsettling both regulators and investors. • This instability complicates the valuation of South Korean equities, which is critical given the nation's role as a primary supplier of AI-related semiconductor technology.

• South Korea's KOSPI index has entered a bear market after plunging approximately 25% from its record high reached in late June. • The decline was accelerated by an 8% single-session drop and a 30% crash in a twice-leveraged ETF tracking the stock in Hong Kong. • This volatility underscores a dangerous over-reliance on the semiconductor sector, as Samsung Electronics and SK Hynix now comprise over 50% of the KOSPI's weighting.

• External Affairs Minister (EAM) Jaishankar unveiled India's campaign for a permanent seat on the United Nations Security Council (UNSC), promoting a "Shanti" vision for global peace and security. • Jaishankar emphasized India's commitment to an equitable world order and its role as a development partner, highlighting active Indian-funded projects across 79 countries. • The initiative aims to amplify the priorities and concerns of the Global South while advocating for dialogue and diplomacy to resolve ongoing global conflicts.

• A Sri Lankan expert highlighted that President Xi Jinping's book on governance directly addresses the specific concerns and aspirations of the Global South. • The expert noted a growing trend among developing nations to prioritize strategic autonomy over exclusive geopolitical alignments to ensure their own prosperity and security. • This perspective underscores China's effort to position its governance model as a viable alternative or support system for non-Western nations.

• South Korean chipmaker SK Hynix is launching a US$28 billion listing on the Nasdaq to capitalize on the surging global demand for artificial intelligence. • The company plans to sell 17.79 million new shares in the form of depository receipts to raise capital. • This strategic move allows SK Hynix to secure funding for infrastructure and technology upgrades as it competes in the high-growth AI memory chip market.