Analyst: AI trading in parts of Asia is shifting from leading gains to closing positions

格隆汇 July 8｜Tickmill Group analyst Patrick Munnelly stated that in some regions of Asia, AI trading has shifted from leading gains to clearing positions. The Korean stock market extended its decline on Wednesday, dragging the benchmark Korea Composite Index into bear market territory. Munnelly noted that after a historic surge, investors continue to sell crowded semiconductor positions. While investors are trying to distinguish broader AI narratives from semiconductor liquidation, this may become increasingly difficult in the future. He added that the market is coping with multiple pressures, including geopolitical supply shocks, excessive tech stock positions, and stubborn inflation expectations.