Samsung Electronics stunned markets by forecasting a 19-fold increase in second-quarter operating profit from a year earlier and noting that the projected result would exceed the company’s combined earnings over the past three years. Rather than delivering an immediate rally, the announcement triggered a sharp sell-off: Samsung shares fell by more than 8%, and South Korea’s main benchmark index declined 6.7% as traders questioned the durability of the AI-fuelled demand behind the company’s outsized outlook.
The local reaction in Seoul spilled over into broader Asian markets. MSCI’s gauge of Asia-Pacific stocks excluding Japan slipped 1.7%, reflecting concern that the AI trade is widening beyond traditional beneficiaries such as semiconductor and chip-equipment companies into sectors including energy, copper mining and lithium supply.
"Investors still want to be exposed, but they are very nervous about valuations," said Michael McCarthy, market strategist at Moomoo Australia, encapsulating the cautious sentiment among market participants.
In early European futures trading, benchmark contracts showed mixed weakness. Pan-region Euro Stoxx 50 futures were down 0.34%, German DAX futures eased 0.3%, while FTSE futures were 0.15% higher. U.S. S&P 500 e-minis were trading up 0.07% in early trade.
Currency markets saw the yen regain some ground after recent weakness. The Japanese yen strengthened 0.15% against the U.S. dollar to 161.83 per dollar, stepping back from the weaker side of the 162 mark, with market participants remaining alert to the possibility of official intervention.
Geopolitical developments are also on the calendar: U.S. President Donald Trump will travel to Turkey to participate in a NATO leaders summit. Ahead of his arrival, European government leaders are preparing to announce arms deals worth tens of billions of dollars, underlining a stepped-up commitment to regional defence.
Key economic releases and data due that could influence market direction include:
- Bank of England - financial stability report
- Germany - industrial output for May
- Britain - Halifax housing data for June
- Canada - leading index for June and trade balance for May
- United States - trade data for May
Separately, the article included a note on equity research and stock picking tools referencing ticker 005930. That commentary described an AI-driven process that evaluates 005930 monthly against thousands of alternatives using more than 100 financial metrics and cited past identification of other stocks before the broader market. Promotional details and subscription references were present in the original material.