Asia Stocks Drift Lower as Korea Volatility Tests Tech Rally | Insight with Haslinda Amin 8/04/2026

Watch on YouTube ↗  |  August 04, 2026 at 07:00  |  48:03  |  Bloomberg Markets
Speakers
Mark Cranfield — Cross Asset Strategist, Bloomberg
Timothy Moe — Chief Asia Economist, UBS

Summary

Bloomberg's Haslinda Amin discusses Asian market volatility, centered on Korea's leveraged ETF unwind and yen intervention. Goldman Sachs strategist Timothy Moe delivers bullish calls on Korea and the AI hardware supply chain, highlights a defense sector theme, offers cautious views on India and Indonesia, and sees structural support for Japan equities. Geopolitical and tech tensions with China are also examined.

  • Asian stocks drift lower, failing to track Wall Street's tech rally amid fresh doubts about the AI trade.
  • Korea's KOSPI faces retail investor exodus from leveraged ETFs, triggering a regulatory crackdown that dampens volatility.
  • Goldman Sachs' Timothy Moe remains bullish on Korea, citing deeply undervalued earnings and a long semiconductor memory cycle.
  • Moe sees the AI hardware supply chain, with Samsung and TSMC, as a stronger-for-longer cycle, attractive after the recent selloff.
  • The defense sector is proposed as a long-term thematic opportunity from US re-industrialization and US-China tensions, benefiting Korea and Japan.
  • India's equity market offers room for a tactical rebound but not a full overweight, with the energy sector singled out as a specific opportunity.
  • Indonesia is viewed as a value trap due to technical overhang from potential MSCI reclassification and macro instability.
  • Japan equities remain structurally bullish with upgraded earnings, though coordinated yen intervention introduces near-term correction risk.
Ideas
Mark Cranfield Cross Asset Strategist, Bloomberg 4:34
Korea equity appeal diminished by leverage crackdown.
Korean and broader Asian equities are becoming less attractive near-term due to the unwind of leveraged ETF positions and regulatory crackdowns reducing retail participation and volatility. Meanwhile, US large-cap tech stocks continue to deliver strong profits, drawing global investor flows away from Asia until markets stabilize.
MSCI Asia ex-Japan Index MED
Mark Cranfield Cross Asset Strategist, Bloomberg 4:34
Korea equity appeal diminished by leverage crackdown.
Korea's KOSPI index is deeply undervalued at 5.1x forward earnings, with 320% earnings growth this year, 35% next year, and 20% in 2028. The market is pricing in a premature end of the semiconductor memory cycle; historically it trades at 10x during such cycles. The recent leverage ETF cleanup will reduce volatility and allow fundamentals to drive the market toward the 12,000 target.
EWY MED
Timothy Moe Chief Asia Economist, UBS 13:41
Japan equities structurally bullish, earnings intact.
Japan equities (TOPIX) remain structurally bullish, supported by recently upgraded earnings forecasts driven by a weaker yen. The coordinated yen intervention poses a tactical correction risk, but fundamentally the yen is unlikely to appreciate as much as in 2024 due to fiscal-policy constraints, keeping the equity bull case intact.
TOPIX Index MED
Timothy Moe Chief Asia Economist, UBS 17:00
AI hardware supply chain cycle persists longer.
The AI hardware supply chain, especially semiconductor memory and foundry (Samsung, TSMC), is in a stronger-for-longer cycle than typical. The recent sharp correction makes it highly attractive, with high conviction that the cycle extends as AI demand sustains.
005930.KS TSM HIGH
Timothy Moe Chief Asia Economist, UBS 18:02
Defense stocks gain from geopolitical spending.
The defense sector offers a high-conviction, long-term thematic opportunity, driven by US re-industrialization needs and ongoing US-China strategic tensions. Korea and Japan are upstream supply chain beneficiaries in shipbuilding, power generation, and technology.
Korean defense stocks Japanese defense stocks MED
Timothy Moe Chief Asia Economist, UBS 19:20
China self-reliance theme is investable.
China's strategic push for self-reliance in technology, energy security, and its five-year plan emphasis on domestic supply chains creates investment opportunities in Chinese equities, particularly in tech and renewable energy sectors, as China decouples from reliance on foreign chokepoints.
MCHI MED
Timothy Moe Chief Asia Economist, UBS 21:26
India tactical rebound, not yet full overweight.
India's equity market has room to rebound tactically after underperformance, supported by lower oil prices, better-than-feared economic data, and improving earnings. However, a full overweight is not warranted due to still-stretched valuations at 20x, a conservative earnings outlook relative to consensus, and risk of food price inflation from El Niño.
Nifty 50 Index MED
Timothy Moe Chief Asia Economist, UBS 23:24
India energy sector an opportunity now.
Within India, the energy sector stands out as a specific opportunity, while the broader market lacks sufficient upside conviction. This is a thematic play on energy within India.
India Energy Sector MED
Timothy Moe Chief Asia Economist, UBS 29:35
Indonesia a value trap, avoid for now.
Indonesia's equity market, despite cheap valuations, is a value trap due to a significant technical overhang from possible free-float adjustments and potential MSCI downgrade, compounded by macro instability following key official resignations, currency weakness, and rising rates. The market is small and lacks clarity, making it unattractive for broad generalists.
Jakarta Composite Index MED
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This Bloomberg Markets video, published August 04, 2026, features Mark Cranfield, Timothy Moe discussing MSCI Asia ex-Japan Index, EWY, TOPIX Index, 005930.KS, TSM, Korean defense stocks, Japanese defense stocks, MCHI, Nifty 50 Index, India Energy Sector, Jakarta Composite Index. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mark Cranfield, Timothy Moe  · Tickers: MSCI Asia ex-Japan Index, EWY, TOPIX Index, 005930.KS, TSM, Korean defense stocks, Japanese defense stocks, MCHI, Nifty 50 Index, India Energy Sector, Jakarta Composite Index