South Korea's Stock Rally Stumbles Amid Global Risk-Off Wave, AI Doubts

• South Korean stocks, including the Kospi index, experienced a sharp selloff, with the Kospi tumbling as much as 5.6%, the most since November.
• The downturn was fueled by uncertainty over interest-rate policy, doubts about AI-driven spending, and a broader unwinding of crowded trades.
• Chip heavyweights Samsung Electronics Co. and SK Hynix Inc. saw their shares fall over 6%, and the Korean won also weakened significantly.
• Concerns were exacerbated by Kevin Warsh's Federal Reserve chair nomination unease and Nvidia CEO Jensen Huang's clarification on OpenAI investment.
• Despite the recent pullback, the Kospi remains up 19% for the year, with some analysts viewing the selloff as a temporary blip rather than a deeper correction.

Why It Matters: South Korea's stock rally faces a significant test as global risk-off sentiment and AI spending doubts trigger a sharp selloff.