ETF Abnormality | Korean stock ETFs decline as long bonds weigh down, the chip sell-off spreads to US stocks, and the Korean stock market fell to a circuit breaker this morning
Korean stock ETFs fell this morning. As of the time of writing, the South China East Ying SK Hynix daily leveraged maximum 2X product dropped 14.31%, priced at HKD 31.62; the South China double long Samsung Electronics fell 12.31%, priced at HKD 70.64; TR Korea dropped 3.96%, priced at HKD 1720. On the news front, the overnight sell-off of U.S. chip stocks has spread to the Asian market, with the Seoul Composite Index in South Korea once plunging over 6%, triggering a circuit breaker. In terms of individual stocks, SK Hynix once fell over 9%, and Samsung Electronics dropped over 7% during the session. Driven by inflation, fiscal deficits, and a wave of artificial intelligence financing, long-term sovereign bonds in the U.S., Germany, France, the UK, and Japan have been sold off, with the yield on 30-year U.S. Treasuries soaring to its highest level since 2007. Currently, the market is focused on the upcoming release of the latest Federal Reserve meeting minutes
According to Zhitong Finance APP, South Korean stock ETFs fell this morning. As of the time of writing, the Southbound East Ying SK Hynix Daily Leveraged Maximum 2X Product (07709) dropped 14.31%, trading at HKD 31.62; the Southbound Double Long Samsung Electronics (07747) fell 12.31%, trading at HKD 70.64; and TR Korea (02848) decreased by 3.96%, trading at HKD 1720.
On the news front, the overnight sell-off of chip stocks in the US has spread to the Asian market, with the Seoul Composite Index in South Korea plunging over 6% this morning, triggering a circuit breaker. In terms of individual stocks, SK Hynix fell over 9% at one point, while Samsung Electronics dropped over 7% during the session. Driven by inflation, fiscal deficits, and a wave of AI financing, long-term sovereign bonds in the US, Germany, France, the UK, and Japan have been sold off, with the yield on 30-year US Treasuries soaring to its highest level since 2007. Currently, the market is focused on the upcoming release of the latest Federal Reserve meeting minutes
