South Korea Stock Market Plunges 6% on AI Concerns

KOSPI experienced a sharp decline amid AI-related concerns, with technical indicators pointing to oversold conditions. The RSI is at a low 31.8, while the MACD is below the signal line and in negative territory. The price is well below both the 20-day and 50-day moving averages, confirming short-term weakness. However, oversold conditions and a 9.9% drop in a single day could increase the likelihood of a short-term rebound. Nevertheless, given the negative sentiment from the news and the deterioration in technical structure, the downtrend is more likely to persist.

The sharp decline in the South Korean stock market could trigger a global risk-off move away from AI-driven technology stocks. Short-term selling pressure may increase, particularly in emerging markets and tech-heavy indices. In Turkish markets, a similar sentiment could lead to losses in technology and semiconductor stocks within the BIST 100. However, the impact is likely to be limited, and markets may recover quickly.

The sharp decline in the South Korean stock market reflects global concerns over the artificial intelligence sector and could negatively impact AI-focused stocks such as NVDA. While technical indicators present a neutral outlook (RSI at 50.8, price near SMA20 and SMA50), macro news flow may create selling pressure in the short term. Although the MACD remains in positive territory, weakening momentum and a loss of risk appetite in external markets support a downward move. Therefore, a bearish movement is expected over a 1-3 day period, though the impact may remain limited.

Although AMD shares rose 4.5% in the last 24 hours, the sharp decline driven by artificial intelligence in the South Korean stock market points to a global reduction in risk appetite. Despite the RSI being in neutral territory at 45.6, the MACD remains below the signal line, confirming short-term weakness. The price trading below the 20-day moving average (554.29) raises doubts about the sustainability of the rally. The negative sentiment generated by the news, combined with fragility in technical indicators, suggests downward pressure can be expected over the next 1-3 days.