HSBC drops overweight stance on emerging-market stocks after KOSPI slide
HSBC just dialed back its outlook on emerging-market stocks, dropping its "overweight" stance.
The move comes after South Korea's KOSPI index slid into bear territory, down over 20% since late June, thanks to growing doubts about how sustainable all this AI-driven spending really is.
HSBC says investors are getting nervous about tech companies taking on too much debt for AI, which could spell trouble for Asian markets in the short run.
HSBC upgrades eurozone equities to overweight
It's not just Korea feeling the heat; a key index tracking emerging-market Asian equities dropped more than 2% today, and even Samsung's big profit forecast couldn't stop its shares from falling.
HSBC warns that if companies start cutting back on AI investments, semiconductor stocks could take another hit.
Meanwhile, the bank is feeling sunnier about Europe, upgrading eurozone equities to "overweight," betting that a weaker euro and lower growth expectations will help European markets ride out the summer.