Emerging Markets Sink for Third Straight Day as KOSPI Plunges 7% on Broadcom AI Slowdown

According to Odaily, on Friday, emerging market assets fell for the third consecutive trading day, with the MSCI Emerging Markets index dropping 1.7% to 1,728.66 points and South Korea's KOSPI index plunging 7%. Samsung Electronics and SK Hynix, which together account for over half of Korea's benchmark index market cap, led the decline following Broadcom's AI chip sales guidance that fell short of market expectations.

The broader market had posted gains for two consecutive weeks; however, emerging market equities are now on track to record weekly losses. Charu Chanana, Chief Investment Strategist at Saxo Markets, noted that Broadcom served as a reminder of excessive market expectations around AI, and that stronger-than-expected nonfarm employment data could provide another trigger for reducing AI-focused investments.