South Korean domestic investors have shifted into US equities amid a weak local market, net-buying USD 3.58999bn (about KRW 5 trillion) from Aug. 1-27, Seibro (Korea Securities Depository) data show. That amount is roughly 5.5x June's full-month net purchases. As of Aug. 23 net buys were USD 2.53026bn; the following two trading days added USD 1.05973bn. Retail flows are concentrated in semiconductor and technology names. The largest net inflow was Direxion Daily Semiconductor Bull 3X ETF (USD 1.

Indian software stocks could register their largest monthly outperformance versus global chip shares: the NIFTY IT index of 10 Indian software exporters is up 16% month-to-date while the MSCI Global Semiconductors & Equipment Index is down 13% over the same period. The divergence indicates a rotation away from AI-driven chip trades into previously battered Indian IT services. South Korea’s KOSPI, viewed as a barometer for global semiconductors and AI investment, is over 30% below mid-June highs. Jefferies last week upgraded the India IT sector to Neutral and said a reversal in AI flows could trigger a temporary rally in the industry.

Japan and South Korea equities plunged as concerns about a major NVIDIA AI supply agreement and intensifying competition hit chip names. The Nikkei 225 fell up to 4% to its weakest since May 22, TOPIX slid as much as 2.7% and the KOSPI tumbled as much as 7.6%, its lowest since April 20. Semiconductor and equipment stocks led losses: Tokyo Electron, Kioxia, Samsung Electronics and SK Hynix were down more than 9% at intraday lows; SK Hynix briefly plunged ~30%, its largest single-day drop on record, and Kioxia fell ~18%, its biggest since November. A wave of AI-related deals worth over $750bn coincided with a spike in NVIDIA credit-default-swap costs, weighing on tech shares. Nomura Asset Management strategist Hideyuki Ishiguro said reports of a major NVIDIA investment transaction raised perceived credit risk and warned Chinese advances in semiconductor manufacturing equipment threaten Japan’s long-standing supplier advantage.