Kospi-Nasdaq 100 Correlation Hits 0.50 as AI Spending Binds Korean and U.S. Tech
Updated
Updated · CNBC · Jul 28
Kospi-Nasdaq 100 Correlation Hits 0.50 as AI Spending Binds Korean and U.S. Tech
1 articles · Updated · CNBC · Jul 28
Summary
A 60-day correlation of about 0.50 between the Kospi and Nasdaq 100 has reached its highest level since 2021, underscoring how closely South Korean and U.S. tech shares now move together.
Samsung Electronics and SK Hynix — more than half of the Kospi combined — are increasingly tied to the same hyperscaler AI spending that drives U.S. chip and megacap tech earnings.
Data-center demand has risen from roughly 40% of global DRAM demand last year to more than half this year, making Korean memory stocks an early market read on AI demand before Wall Street opens.
July 13 trading showed the linkage: the Kospi fell more than 8% after SK Hynix plunged 15%, and the Nasdaq 100 later closed down 1.88% as U.S. chip names also slid.
The tighter relationship weakens diversification benefits for investors holding both markets, though analysts say differences in capex, product mix and China’s memory-chip push could eventually drive some divergence.