Rising lockstep movement between US and Korean markets may amplify tech sector swings, warns market commentator.
The 60-day correlation between the Korea Composite Stock Price Index (KOSPI) and the Nasdaq 100 has climbed to nearly 0.50, matching levels last seen in 2021. This growing linkage is driven by KOSPI’s heavy exposure to two AI chipmakers, which now account for roughly 50% of the index.
Recent market moves underscore the connection. The KOSPI plunged 10.84% in a single session, reflecting heightened sensitivity to AI-related sentiment. Analysts note this interdependence could exacerbate volatility in tech-heavy US indices.
The trend raises concerns about concentrated risk, as shifts in global AI demand may increasingly dictate performance across both markets.