Korea Leads Drop as AI Mania Gets Tested | The Asia Trade 6/5/2026

Watch on YouTube ↗  |  June 05, 2026 at 05:14  |  1:38:40  |  Bloomberg Markets
Speakers
George Boubouras — Managing Director, K2 Asset Management
Khoon Goh — Head of Asia Research, ANZ
David Savage — Editor, The Block
Anthony Stephens — Markets Reporter

Summary

The episode covers a broad rotation from AI chipmakers into financials and other sectors after Broadcom's disappointing outlook. South Korea's KOSPI drops sharply as the concentrated AI rally unwinds, while guests discuss long opportunities in Japan, Singapore, and Australia, and short/avoid views on Indonesia and India. FX analysts highlight continued yuan strength and structural yen weakness.

  • Broadcom's soft guidance triggers a selloff in AI chip stocks and a rotation into financials.
  • KOSPI falls over 6% as retail leverage unwinds and foreign selling intensifies.
  • George Boubouras recommends long Nikkei, KOSPI, Singapore, and Australia on retracement.
  • He also recommends short Indonesia and avoid India due to reform and currency issues.
  • Khoon Goh expects further yuan appreciation, targeting 6.70 per dollar.
  • Japan's Topix bank index hits highest since 1997 on rotation and BOJ rate hike expectations.
  • Geopolitical tensions in the Middle East remain a key risk, with oil prices stable.
  • Upcoming IPOs from SpaceX and Anthropic add to equity supply and potential crowding out.
Trade Ideas
George Boubouras Managing Director, K2 Asset Management 58:44
Long Japan, Korea, Singapore, Australia indices.
Prefers Nikkei, KOSPI, Singapore, and Australian indices on retracement because these markets have large earnings coming through with high payout ratios and dividends, and the broadening out of the AI trade benefits these regions.
EWJ EWY EWA EWS MED
George Boubouras Managing Director, K2 Asset Management 59:01
Short Indonesia on weakness and reform.
Indonesia is a short because of currency weakness, capital flight, and lack of consistent economic reform, disappointing investors.
EIDO MED
George Boubouras Managing Director, K2 Asset Management 59:41
Avoid India due to reform lag.
India is not the place to invest because it lacks broad-based reform and access to key tech sectors, and debt side is not positive; investors should avoid.
INDA MED
Khoon Goh Head of Asia Research, ANZ 79:26
Bullish on yuan appreciation.
The Chinese yuan is appreciating and will continue to strengthen due to capital inflows, strong exports, and exit from deflation; expects further appreciation to 6.70 or beyond.
CNY MED
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This Bloomberg Markets video, published June 05, 2026, features George Boubouras, Khoon Goh discussing EWJ, EWY, EWA, EWS, EIDO, INDA, CNY. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: George Boubouras, Khoon Goh  · Tickers: EWJ, EWY, EWA, EWS, EIDO, INDA, CNY