Odaily Planet Daily reports that volatility in South Korea's benchmark stock index has reached extreme levels, leading investors and analysts to compare the market's dramatic intraday swings to a "meme stock" frenzy. While this comparison may sound exaggerated at first, given the strong earnings of the Kospi index, a leading global chipmaker, it's not entirely without merit. Retail investor interest is surging, with the Kospi index closing with at least a 5% change on 20 trading days this year, compared to only two such days in all of 2025. Samsung Electronics has seen eight trading days with a change of 10% or more this year, compared to none last year; SK Hynix has had 11 such days this year, compared to only two in 2025. This is reminiscent of the retail frenzy surrounding stocks like Game Station and Bed Bath & Beyond (BBBY) in the past. A major driver of this surge in volatility is the frenzied buying of leveraged ETFs by retail investors. Furthermore, the increasing dominance of these two heavyweight stocks has also exacerbated the volatility. Goldman Sachs estimates that a 5% fluctuation in the South Korean stock market could trigger approximately $4.7 billion in ETF rebalancing flows, as options traders need to adjust their risk exposure. This amount is equivalent to about one-eighth of the normal trading volume on a typical South Korean stock market day. (Jinshi)

According to Odaily Planet Daily, the Hong Kong Securities and Futures Commission (SFC) released its 2025-26 Annual Report, which disclosed that for the year ended March 2026, the average daily turnover of approved ETFs and leveraged and inverse products surged 50.6% year-on-year to HK$38.1 billion, while the total market capitalization increased by 25.2% to HK$651.2 billion. The market capitalization of single-stock leveraged and inverse products even soared 60 times during the year. Driven by strong net capital inflows, the total assets under management of funds registered in Hong Kong jumped 19.4% to HK$2.3 trillion. Post-IPO financing in Hong Kong grew steadily by 18% year-on-year to HK$259 billion, while IPO fundraising also surged 272% to HK$379 billion. Furthermore, liquidity and efficiency in the secondary market improved: the average daily turnover in the Hong Kong market recorded a 54% increase, reaching a new high of HK$258 billion.

According to Bijie.com, DWS predicts that the US economy will grow by 3.2% this year and 2.3% next year, with artificial intelligence (AI) being a significant contributor. Wu Shuangrong, Chief Investment Officer for DWS Asia Pacific, expects the Federal Reserve to cut interest rates twice before May next year, lowering the target range for the federal funds rate to 3% to 3.25%. Wu explained that the Fed is primarily focused on inflation expectations and the unemployment rate. While oil prices have slowed economic growth, the situation is manageable, and the market is concerned about AI replacing the workforce and reducing job vacancies. Regarding the development of AI stocks, Wu believes there will be no bubble burst in the next 12 months and will observe valuation multiples, corporate earnings, and balance sheets.

According to Gate data, WTI crude oil fell 2.00% intraday, currently trading at $72.17 per barrel. (Odaily Planet Daily)

According to CoinWorld, the European Union, the Netherlands, Germany, and Greece have officially joined the US-led Pax Silica alliance, which aims to secure the supply chain of AI-related technologies and reduce Western countries' dependence on China's AI supply chain. Jacob Helberg, the US Under Secretary of State for Economic Affairs and the architect of the Pax Silica alliance, revealed at a summit in Washington that Argentina, Chile, Costa Rica, Kazakhstan, and Panama will also sign an agreement this week, bringing the total number of member states to 24. Pax Silica, established in 2025, currently focuses on rapidly reducing dependence on Chinese rare earth elements and building a secure supply chain network in areas such as chips, critical minerals, and energy. Helberg emphasized that traditional multilateral organizations like the G7 or G20 are unsuitable for directly managing the AI economy; Pax Silica focuses on "innovation sovereignty," which is fundamentally different from the "digital sovereignty" of the UN Global Digital Compact, which could lead to redundant and mediocre investments.