Korean stocks plummet over 3%, US stock futures, gold fall, A-shares recover from bottom

On Thursday, during the Asia-Pacific trading session, a wave of decline affected various global assets. The South Korean stock market led the decline in the Asia-Pacific region, with the Hang Seng Index in Hong Kong falling nearly 2%. The A-share market saw all three major indices decline at the start of trading, but they rebounded before noon, with the ChiNext Index turning positive. The precious metals market experienced pressure in tandem, U.S. stock futures dropped, and selling pressure spread across multiple markets.

The South Korean Composite Index plummeted by 3.1%, closing at 7975.62 points. The Hang Seng Index in Hong Kong fell by 1.85%, with tech stocks collectively sluggish, and Meituan dropping nearly 5%. The A-share market initially declined across the board in the morning session, but then stabilized and recovered, with the Shanghai Composite Index falling by 0.14%, the Shenzhen Component Index by 0.26%, and the ChiNext Index rising by 0.21% at midday.

The drop in Japan's Nikkei 225 Index widened to 1%, and the Thailand SET Index fell by 1%. In Europe, the Stoxx 50 futures declined by 1.2%, with futures for the UK's FTSE and Germany's DAX falling nearly 1%, and the Nasdaq 100 futures dropping by 0.7%.

Spot gold fell nearly 2% during the day, with spot silver dropping more than 3%, and domestic Shanghai silver also declining by over 2%. Traditional safe-haven assets and risky assets weakened in tandem, suggesting that the market might be experiencing a broad sell-off driven by liquidity.

Korean Stocks Lead the Decline, Hong Kong Stocks Under Pressure

A daily drop of over 3% in the South Korean Composite Index is relatively rare in recent market conditions, with the index breaking below the psychological barrier of 8000 points, closing at 7975.62.

Regarding Hong Kong stocks, the Hang Seng Index fell over 1% at the start of trading, and the decline later expanded to 1.85%, with the Hang Seng Tech Index down 0.64%. Tech stocks were generally weak, with Meituan falling nearly 5%, and WuXi AppTec dropping over 3%.

Pop Mart bucked the trend by surging over 3%, following Duan Yongping and his affiliated actors' stake rising to 5.69%, triggering mandatory disclosure requirements. The news of the stake increase boosted the single stock's sentiment.

A-Share Market Find Bottoming and Rebounds, with Notable Structural Differences

The A-share market opened lower and continued to fall, with the ChiNext Index once dropping by more than 1%, and nearly 2300 shares declining across the Shanghai, Shenzhen, and Beijing markets. However, the market later stabilized and rebounded, with the ChiNext Index turning positive by midday, climbing by 0.21%, significantly outperforming the broader market.

Opportunities were concentrated in several main threads. The chip industry chain was outstanding, with Hua Hong Company surging by nearly 15%, setting a new historical high, with a combined A+H stock market value exceeding 300 billion yuan, and Semiconductor Manufacturing International Corporation rising by over 6%, with its stock price also hitting a historical peak.

The lab-grown diamond concept maintained its strength, with Sifangda and Yellow River Hurry up to the daily limit. The supercapacitor concept continued to strengthen, with Fenghua High-Tech and Jianghai Corporation up to their daily limit. The power and coal sectors continued to rise, with Huadian Energy and Zhejiang New Energy up to their daily limit. The liquid cooling server direction also showed performance, with Yidong Electronics hitting the 20cm daily limit.

On the downside, baijiu stocks notably declined, with Golden Seed Liquor dropping over 7%. The precious metals sector fell due to external market drag, with Sino Gold down over 5%. Securities and film and television sectors were also under pressure. About 3300 shares in the Shanghai, Shenzhen, and Beijing markets were in the red, with more falling than rising, and morning trades totaling 1.8 trillion yuan.

Precious Metals and Commodities Generally Down, U.S. Stock Futures Soften

Spot gold fell nearly 2% during the day, and silver more than 3%, with precious metals failing to reflect safe-haven properties. Most domestic futures in China were down