{"id":65578,"date":"2026-07-28T22:38:19","date_gmt":"2026-07-29T02:38:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-in-turmoil-kospi-plummets-6-as-seoul-weighs-intervention-zuckerberg-opposes-chinese-ai-ban\/65578\/"},"modified":"2026-07-28T22:38:19","modified_gmt":"2026-07-29T02:38:19","slug":"asian-markets-in-turmoil-kospi-plummets-6-as-seoul-weighs-intervention-zuckerberg-opposes-chinese-ai-ban","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-in-turmoil-kospi-plummets-6-as-seoul-weighs-intervention-zuckerberg-opposes-chinese-ai-ban\/65578\/","title":{"rendered":"Asian Markets in Turmoil: KOSPI Plummets 6% as Seoul Weighs Intervention; Zuckerberg Opposes Chinese AI Ban"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korea&#39;s KOSPI index plunged 6% on July 29<\/strong>, triggering multiple &quot;sidecar&quot; trading halts as heavy selling pressure in the semiconductor sector intensified.<\/li>\n<li><strong>Mark Zuckerberg, CEO of Meta (<a href=\"\/stock\/META\">META<\/a>)<\/strong>, warned that banning cutting-edge Chinese AI in the U.S. would be ineffective and could lead to &quot;regulatory capture&quot; by a few dominant firms.<\/li>\n<li><strong>The South Korean Finance Ministry is reviewing stabilization measures<\/strong> to address extreme market volatility, following the index&#39;s breach of the 6,000-point level.<\/li>\n<li><strong>Regional currencies are under significant pressure<\/strong>, with the Taiwan Dollar hitting its weakest level since April 2025 and the Indonesian Rupiah easing to 18,100 per U.S. dollar.<\/li>\n<li><strong>The Philippines&#39; main stock index bucked the regional trend<\/strong>, advancing 2% to reach a fresh July high of 6,428.14 points.<\/li>\n<\/ul>\n<h2>South Korean Markets Face Historic Pressure<\/h2>\n<p>The <strong>KOSPI<\/strong> index experienced a dramatic <strong>6% decline<\/strong> during Wednesday&#39;s session, continuing a brutal month for Seoul stocks. The <strong>Korea Exchange (KRX)<\/strong> was forced to trigger program &quot;sidecar&quot; halts for both the <strong>KOSPI<\/strong> and <strong>KOSDAQ<\/strong> markets as futures prices plummeted, marking one of the most volatile trading days of the year.<\/p>\n<p>In response to the carnage, the <strong>South Korean Finance Ministry<\/strong> announced it is closely reviewing potential steps to stabilize the market. Officials are monitoring the impact of heavy net selling by foreign investors, particularly in heavyweights like <strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>)<\/strong> and <strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong>, which have been hit by a sudden reassessment of the global AI chip cycle.<\/p>\n<h2>Zuckerberg Challenges U.S. Stance on Chinese AI<\/h2>\n<p>In an interview with the <em>Financial Times<\/em>, <strong>Meta (<a href=\"\/stock\/META\">META<\/a>)<\/strong> CEO <strong>Mark Zuckerberg<\/strong> argued that blocking Chinese AI models in the United States would not be an &quot;effective solution&quot; to maintaining a competitive edge. Zuckerberg warned that such restrictions might inadvertently stifle domestic innovation and lead to a market dominated by a small number of &quot;frontier labs.&quot;<\/p>\n<p>The comments come as Washington considers further restrictions on AI technology exports and intellectual property protections. Zuckerberg emphasized that <strong>open-source models<\/strong> are critical for security, allowing companies to identify and patch vulnerabilities more effectively than closed, restricted systems.<\/p>\n<h2>Regional Currency and Banking Shifts<\/h2>\n<p>Currency markets across Asia are showing signs of strain as the U.S. dollar remains strong. <strong>Taiwan&#39;s currency<\/strong> fell to <strong>32.495 per USD<\/strong>, its weakest point in over a year, while <strong>Indonesia&#39;s rupiah<\/strong> eased to <strong>18,100 per USD<\/strong>. These movements reflect broader capital outflows from emerging markets amid the ongoing tech-led selloff in North Asia.<\/p>\n<p>In the banking sector, <strong>HSBC (<a href=\"\/stock\/HSBC\">HSBC<\/a>)<\/strong> is accelerating its &quot;Pivot to Asia&quot; by relocating <strong>Aileen Taylor<\/strong>, Group Chief People and Governance Officer, from London to <strong>Hong Kong<\/strong>. This move strengthens the bank&#39;s senior executive presence in its most profitable market, following the recent privatization of its <strong>Hang Seng Bank<\/strong> unit.<\/p>\n<h2>Philippines Outperforms Amid Regional Gloom<\/h2>\n<p>While North Asian markets struggled, the <strong>Philippines&#39; main stock index<\/strong> advanced <strong>2%<\/strong> to close at <strong>6,428.14 points<\/strong>. This gain represents a fresh high for the month of July, driven by domestic bargain hunting and improved investor sentiment regarding local economic fundamentals. Analysts noted that the Philippine market has remained relatively insulated from the semiconductor-specific volatility currently plaguing Seoul and Taipei.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korea&#39;s KOSPI index plunged 6% on July 29, triggering multiple &quot;sidecar&quot; trading halts as heavy selling pressure 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