STAR 50 index losses widened to about 5% in afternoon trading. Components Zhongke Feice, Tuojing Technology and Zhongwei Co. fell more than 10%; Huahai Qingke and Shengke Communication‑U were among the largest decliners.

Vietnam July imports YoY 41.4%, down from 45.20% previously.

MORGAN STANLEY upgraded South Korea equities to overweight from neutral, saying recent deleveraging improves entry points for AI and an industrial supercycle trade. Strategists led by Daniel K Blake estimate KOSPI has about 36% upside to their 9,000 target after large unwinds of crowded and leveraged positions. The index fell as much as 5.5% on Monday following a record 18% jump on Friday. Morgan Stanley describes the recent sell-off as mainly technical and says deleveraging of leveraged ETFs, hedge-fund leverage and retail margin trading is more than half complete. It sees KOSPI trading in a 5,500–10,500 range near term, and expects Samsung Electronics and SK Hynix to provide valuation support; industrials, defense and financials are likely beneficiaries.