KOSPI-Nasdaq Correlation Hits 5-Year High as AI Bet Worryingly Binds Markets

South Korea's Kospi index and the Nasdaq 100 are moving in near lockstep. Their 60-day correlation climbed to about 0.50, the highest level since 2021, according to data from Rayliant Global Advisors.

The tightening link traces back to artificial intelligence (AI) spending. It now ties Samsung Electronics and SK Hynix to the same hyperscaler capital expenditure driving U.S. tech earnings.

Chipmakers Anchor the Kospi

Samsung and SK Hynix together account for more than half of the Kospi index. These important companies in South Korea thus also sway the index, linking AI infrastructure directly to the way in which the market moves.

Data-center demand made up roughly 40% of global DRAM (dynamic random-access memory) demand last year. That figure now exceeds half, and many expects it to keep rising.

That volatility played out again this week. SK Hynix's recent selloff knocked the stock down 13% as AI capital expenditure doubts spread through the chip sector.

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