Investors

• South Korea's Kospi index declined amid volatile trading as investors began shifting their focus away from the semiconductor boom. • The downturn extended to Japan, where chipmaker Kioxia, the nation's most valuable company, saw its value plummet by more than 15%. • This trend signals a broader market correction and a potential cooling of the AI-driven chip trade that has previously propelled Asian markets.

• Thailand’s SET Index closed its morning session on Wednesday at 1,593.03 points, marking a marginal increase of 1.79 points (0.11%) with a trading value of THB 39.20 billion. • The index remained stable and stayed in positive territory primarily due to gains in DELTA, according to Pi Securities. • Market movement is currently cautious as investors await key catalysts, including upcoming corporate earnings reports and critical U.S. economic data.

• U.S. stock index futures for the Dow Jones, S&P 500, and Nasdaq traded modestly higher on Tuesday. • Investors are closely monitoring potential diplomatic talks between the United States and Iran taking place in Qatar. • Market focus is shifting toward upcoming key economic indicators and the release of Nike's quarterly financial results.

• The UK stock market, including the FTSE 100, FTSE 250, and FTSE All-Share, is expected to open on a positive note following a streak of six consecutive quarterly gains. • Market optimism is being driven by easing inflation rates and a notable increase in mergers and acquisitions (M&A) activity across various sectors. • The London Stock Exchange Group (LSEG) is highlighted as a key stock to watch, currently trading near 8,076 GBX with a "Strong Buy" consensus and a 12-month target of 12,145 GBX.

• The FTSE 100 is expected to open slightly higher today, driven by positive investor sentiment and strong economic performance. • This optimistic outlook follows reports that the UK economy expanded by 0.6% in the first quarter (Q1), exceeding previous expectations. • The growth data provides critical support for the stock market, though analysts predict the index will trade within a narrow range in the short term.

• Palo Alto Networks stock reached a record high of $306.24 on June 26, following a 90% surge over three months driven by record next-generation firewall bookings. • The company is expanding its integrated security stack through the new Idira platform for AI-native identity security and a strategic partnership with IBM's Project Lightwell. • CEO Nikesh Arora warned that "agentic AI" will soon enable autonomous, end-to-end cyberattacks capable of executing in minutes, increasing the urgency for AI-driven defenses.

• A survey of 1,200 investors conducted by Seoul Economic Daily reveals a strong shift toward equities, with 70% of respondents planning to increase their stock investment weighting. • Optimism is high among a segment of investors, as 25% expect the KOSPI index to reach 10,000 this year, while property investment is now a secondary preference for 39%. • Market participants identified macroeconomic instability, specifically U.S. interest rate hikes and conflicts in the Middle East, as the primary risks to financial stability.

• The Bank for International Settlements (BIS) warned in its annual economic report released Sunday that the AI investment boom is creating significant systemic risks. • Funding is increasingly flowing through loosely regulated non-bank channels, including hedge funds and private credit vehicles, rather than traditional banking systems. • This lack of oversight means a potential AI market downturn could trigger a sharper and faster financial crash than a standard banking crisis.

• Asian equities traded cautiously on Monday, with Japan's Nikkei slipping 1% and South Korea's Kospi falling nearly 2%, dragging the MSCI Asia-Pacific index down 0.4%. • Market instability is being driven by lingering uncertainty regarding a Middle East ceasefire and investor fears that the US Federal Reserve may implement further interest rate hikes. • The situation is further complicated by the US dollar hovering near a one-year high, though US and European futures showed slight gains of 0.4% and 0.2% respectively.

• Asia-Pacific markets showed mixed results as investors weighed geopolitical tensions between the U.S. and Iran alongside corporate investment plans from major tech firms. • Regional indices saw varied movement, with Japan's NIKKEI falling 0.50% to 69,011.93 and South Korea's KOSPI dropping 0.88%, while Hong Kong's HSI rose 0.89% to 22,874.71. • Market volatility is driven by anticipation of upcoming U.S. employment data, specifically the nonfarm payrolls report, which may signal persistent inflation.