Woofun AI reports that the KOSPI index fell below 7,200 points, marking a cumulative decline of over 20% from last month's all-time high and potentially entering a technical bear market. The Korea Exchange triggered a circuit breaker on the KOSPI index, halting program trading as SK Hynix dropped 5% and Samsung Electronics fell 6.9%. Jordan Klein of Mizuho Securities stated that investors' reaction to Samsung's preliminary second-quarter performance was excessive, noting that excluding one-time bonus expenses, Samsung's operating profit significantly exceeded expectations with an implied memory business margin potentially exceeding 80%.

Meanwhile, an AI trading rotation emerged in Asian markets as the Hang Seng China Enterprises Index rose 3.4% and the Hang Seng Tech Index soared over 5%, with Alibaba jumping over 8% and Tencent rising over 3%. Market participants believe funds are shifting from crowded AI infrastructure trades to markets with lower valuations, fueled by reports of DeepSeek's self-developed chip and Smart Spectrum AI considering its own AI chip design.