look news india
There are signs of weakness from the global stock market today. A huge fall has been recorded in Asian markets today due to large-scale profit booking and selling in technology stocks. The biggest impact has been seen on the South Korean market. This decline has come at a time when the world’s leading tech company Samsung Electronics has registered a tremendous increase in its quarterly profits, but investors still seem cautious about the high valuation of AI rally.
Kospi falls 4% despite Samsung’s record profits
In Asian markets today, South Korea’s benchmark index Kospi (KOSPI) fell by about 4%. At the same time, a decline of 0.72% was also seen in the small-cap index Kosdaq. Shares of tech giant Samsung Electronics slipped more than 5% even after it reported a massive 19-fold rise in quarterly operating profit. In fact, market experts believe that despite such impressive growth, this result fell slightly behind the very high market expectations. Additionally, shares of SK Hynix also fell more than 1%, which recently started the official process for its US listing.
Condition of Japan and Australia markets
A mixed trend was also seen in Japan’s stock market. The Nikkei 225 was seen trading marginally lower, while the broader Topix index was up 0.60%. On the other hand, Australia’s benchmark index S&P/ASX 200 also closed with a weakness of 0.12% today. Futures of Hong Kong’s Hang Seng Index were trading at 23,571, below its previous closing level of 23,616.32.
Crude oil softening and Japanese yen situation
Talking about the commodity market, the prices of West Texas Intermediate (WTI) crude oil in the international market have fallen below $69 per barrel. There are signs of increasing oversupply of crude oil in the market, because Saudi Arabia has recently cut oil prices. Along with this, supply concerns have also reduced due to improvement in shipping activities through the Strait of Hormuz. On the other hand, in the forex market, the Japanese Yen remains at the level of 162.08 against the dollar, which is the lowest level in almost four decades.
There was a boom in the American stock market
Unlike Asian markets, US stock markets closed with strong gains on Monday. US markets remained bright due to the rise in big chipmaker companies like Broadcom, as investors maintained their faith in companies related to Artificial Intelligence (AI). The S&P 500 index rose 0.72% to 7,537.43, while the Nasdaq Composite added 1.12% to 26,121.16. Additionally, the Dow Jones Industrial Average closed at a record high of 53,055.91, up 0.29%. Short-term treasury bonds in the US also saw a rise, indicating that the Federal Reserve may avoid increasing interest rates in the coming time.