{"id":64934,"date":"2026-07-17T02:38:22","date_gmt":"2026-07-17T06:38:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-south-koreas-kospi-enters-bear-territory-japan-reaffirms-boj-independence\/64934\/"},"modified":"2026-07-17T02:38:22","modified_gmt":"2026-07-17T06:38:22","slug":"global-markets-retreat-as-south-koreas-kospi-enters-bear-territory-japan-reaffirms-boj-independence","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-south-koreas-kospi-enters-bear-territory-japan-reaffirms-boj-independence\/64934\/","title":{"rendered":"Global Markets Retreat as South Korea\u2019s Kospi Enters Bear Territory; Japan Reaffirms BOJ Independence"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korea\u2019s Kospi Index has officially entered a technical bear market<\/strong>, plummeting 22% from its June peak due to an unwinding of leveraged retail positions and skepticism over the AI semiconductor cycle.<\/li>\n<li><strong>Japan\u2019s Finance Minister Satsuki Katayama<\/strong> emphasized that the Bank of Japan (<a href=\"\/stock\/8301\">8301<\/a>) retains full autonomy over monetary policy, attempting to calm markets following recent volatility in Japanese Government Bonds (JGBs).<\/li>\n<li><strong>Burberry (<a href=\"\/stock\/BRBY\">BRBY<\/a>) reported a 5% rise in Q1 retail comparable sales<\/strong>, driven by a 9% surge in Greater China, though European markets saw a 3% decline.<\/li>\n<li><strong>Volvo Cars (<a href=\"\/stock\/VOLV-B\">VOLV-B<\/a>) warned of &quot;challenging&quot; U.S. conditions<\/strong> as heavy tariffs and shifting electric vehicle (EV) regulations forced the company to discontinue its entry-level EX30 model in the American market.<\/li>\n<li><strong>Equity futures for major European indices weakened<\/strong> in early Friday trading, with Eurozone, German, and UK futures falling between 0.37% and 0.87% amid global tech sector jitters.<\/li>\n<\/ul>\n<h2>Asian Markets: South Korea Bear Market and Japan&#39;s Policy Stance<\/h2>\n<p>The <strong>South Korea Kospi Index (<a href=\"\/stock\/KOSPI\">KOSPI<\/a>)<\/strong> has slumped into technical bear market territory, marking a sharp reversal from its status as one of the world&#39;s top-performing indices earlier this year. The decline, which reached <strong>22% from its June all-time high<\/strong>, has been fueled by the forced liquidation of leveraged &quot;ant&quot; retail investors and cooling sentiment toward semiconductor heavyweights like Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) and SK Hynix (<a href=\"\/stock\/006600\">000660<\/a>). <em>Analysts suggest that capital is now rotating into undervalued Chinese tech giants listed in Hong Kong, providing a boost to the Hang Seng Tech Index.<\/em><\/p>\n<p>In Japan, Finance Minister <strong>Satsuki Katayama<\/strong> moved to stabilize financial markets by reaffirming that the <strong>Bank of Japan (<a href=\"\/stock\/8301\">8301<\/a>)<\/strong> remains solely responsible for specific monetary policy measures. Katayama noted that the government is monitoring economic conditions and striving to reduce the <strong>debt-to-GDP ratio<\/strong> steadily, but will not interfere with the central bank&#39;s independence. These comments follow a &quot;Basic Policy shock&quot; earlier in the month that saw 10-year JGB yields spike to <strong>2.90%<\/strong> on fears of aggressive fiscal expansion.<\/p>\n<h2>Corporate Updates: Burberry Growth and Volvo\u2019s Tariff Struggles<\/h2>\n<p><strong>Burberry (<a href=\"\/stock\/BRBY\">BRBY<\/a>)<\/strong> posted a <strong>5% increase in Q1 2026 retail comparable sales<\/strong>, reaching <strong>GBP 455 million<\/strong>. The luxury house saw significant strength in <strong>Greater China (+9%)<\/strong>, which helped offset a <strong>3% decline in the ENEIA (Europe, Middle East, India, and Africa) region<\/strong>. Despite the growth, the results slightly trailed analyst estimates of 5.22%, reflecting a <em>tepid global recovery in high-end discretionary spending.<\/em><\/p>\n<p><strong>Volvo Cars (<a href=\"\/stock\/VOLV-B\">VOLV-B<\/a>)<\/strong> is navigating a fragmented U.S. landscape characterized by <strong>25% import tariffs<\/strong> and a <strong>100% duty on Chinese-made EVs<\/strong>. Chief Commercial Officer Bj\u00f6rn Annwall stated that while the U.S. market shows signs of recovery, the regulatory environment remains a significant hurdle. Consequently, Volvo has <strong>discontinued the EX30 EV<\/strong> in the U.S. after its starting price rose to over <strong>$40,000<\/strong> due to trade costs, shifting its focus toward domestically produced hybrids at its South Carolina plant.<\/p>\n<h2>Geopolitical and Commodity Outlook<\/h2>\n<p>Security concerns in the Middle East intensified as <strong>eight explosive-laden drones<\/strong> were intercepted over <strong>Erbil, Iraq<\/strong>, by U.S.-led coalition forces. While no casualties were reported, the incident has kept regional risk premiums high. In the commodities market, <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a> (<a href=\"\/stock\/GLD\">GLD<\/a>)<\/strong> struggled near monthly lows as persistent inflation fears bolstered bets for further <strong>Federal Reserve<\/strong> rate hikes, providing support for the <strong>U.S. Dollar<\/strong>.<\/p>\n<p>European equity markets are braced for a negative open, with <strong>Euro Stoxx 50 futures<\/strong> down <strong>0.87%<\/strong> and the <strong>DAX<\/strong> down <strong>0.66%<\/strong>. This downward pressure follows a rout in Asian tech stocks, where the <strong>Nikkei 225<\/strong> fell <strong>6%<\/strong> to its weakest level in two months, driven by a halving of value for memory-maker Kioxia from its June peak.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korea\u2019s Kospi Index has officially entered a technical bear market, plummeting 22% from its June peak due 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