Stocks

• South Korea's Kospi index plummeted 4.5% as investors aggressively sold off stocks linked to artificial intelligence. • Other Asian markets showed mixed results, with Taiwan's Taiex falling 0.5% and the Shanghai Composite edging 0.1% lower, while Hong Kong's Hang Seng rose 1.7% to 24,984.24. • TSMC shares climbed 1.3% following a previous 7.3% drop triggered by the company's announcement to invest an additional $100 billion in U.S. chipmaking capacity.

• China-based Moonshot AI is planning an initial public offering (IPO) in Hong Kong with a target valuation of up to $30 billion, a 50% increase from its previous $20 billion valuation. • The move follows the July 17 unveiling of Kimi K3 at the World Artificial Intelligence Conference in Shanghai, a model featuring 2.8 trillion parameters. • Kimi K3 is positioned as the world’s largest open-weight AI system, allowing external developers to build upon its architecture, contrasting with the closed models of OpenAI and Anthropic.

• Asian stock markets showed mixed results as investors reassessed their positions in artificial intelligence (AI) stocks. • Chinese semiconductor firms saw significant gains, with Semiconductor Manufacturing International Corp jumping over 4% and Hua Hong Semiconductor surging more than 6%. • Regional performance varied, with South Korean markets sliding while Australia's S&P/ASX 200 rose 0.2% and Singapore's Straits Times Index fell 0.1%.

• The FTSE 100 is projected to open slightly lower on July 20 as investors react to global market weakness and heightened geopolitical tensions in the Middle East. • Market participants are closely analyzing oil price fluctuations and corporate earnings reports to gauge the current state of global economic growth. • Investors are prioritizing upcoming economic data from China and the United States, specifically focusing on inflation trends and their impact on interest rates.

• South Korea's Kospi index plummeted nearly 5% as investors aggressively sold off stocks linked to artificial intelligence. • In contrast, Taiwan's Taiex remained relatively stable, edging down less than 0.1% supported by a 2% rise in TSMC shares. • Other regional markets showed strength, with Hong Kong’s Hang Seng rising 2.1% to 25,105.78 and the Shanghai Composite gaining 1.2% to 3,808.39.

• South Korean retail investors have poured billions into leveraged bets on AI-related stocks, shifting the market from a stable bellwether to a high-volatility "AI frenzy." • As of July 17, margin loans remain high at 34.37 trillion won ($23 billion), following a June peak of 38.6 trillion won. • A Hong Kong-listed, twice-levered SK Hynix fund has surged over 20 times since the start of the year to reach $7.78 billion, becoming the largest of its kind globally.

• Gift Nifty is positioned at 24,300, signaling a flat opening for Indian stock markets on July 20, 2026. • Market volatility this week is expected to be driven by quarterly earnings from major corporations, including IT giant Infosys. • External pressures influencing trading activity include the geopolitical situation in West Asia and fluctuating crude oil prices.