AI Dream Reverses in Asian Markets: Retail Investors Face Heavy Losses

The KOSPI fell more than 4% in the past 24 hours, retreating to the 816 level, reflecting the impact of disappointment in AI‑focused stocks on market prices. While the RSI sits at 48 in the neutral zone, the MACD remains in negative territory and trades above its signal line, confirming weak momentum. Prices are above the 20‑period SMA but well below the 50‑period SMA, suggesting that short‑term recovery may be limited. Heavy losses among retail investors heighten the risk of panic selling and a decline in risk appetite. Downward pressure could persist for the next one to three days, but the absence of extreme oversold conditions may restrain the pace of the decline.

The report highlights a sharp decline in AI-themed stocks across Asian markets and the losses incurred by retail investors, which could reduce short-term risk appetite for the HSI. The index has fallen 0.77% over the past 24 hours to 24,557 and is now trading very close to its SMA20 (24,531). The RSI stands at 60; although it has moved away from overbought territory, the MACD remains below its signal line, indicating weakening momentum. Technical indicators are giving mixed signals while the news flow is negative, so limited downward pressure can be expected. Nonetheless, holding above the SMA50 (24,112) preserves medium-term recovery potential, so confidence should be kept moderate.

A sharp decline in AI-themed stocks across Asian markets could weaken global risk appetite and spread to other markets through technology-heavy indices. Heavy losses among retail investors may increase short-term volatility and support demand for safe-haven assets. Although Turkish markets are not directly exposed, the global risk-aversion trend could create limited pressure on the BIST and the Turkish lira. Overall market sentiment may follow a cautious-negative trajectory in light of this news.