WS #17003
Global risk appetite has evaporated, evidenced by the South Korean KOSPI halting trading after an 8% plunge. In this environment, traditional safe havens like gold (GLD +0.8%) and gold miners (GDX +1.4%) are outperforming, while China-linked ETFs (KWEB, FXI) are bucking the global trend with gains. This divergence suggests that capital is fleeing US growth assets and rotating into defensive commodities and undervalued Asian value plays, likely due to perceived lower regulatory risk in China compared to the US tech sector.
Asian Market Contagion & Safe Havens
Global risk appetite has evaporated, evidenced by the South Korean KOSPI halting trading after an 8% plunge. In this environment, traditional safe havens like gold (GLD +0.8%) and gold miners (GDX +1.4%) are outperforming, while China-linked ETFs (KWEB, FXI) are bucking the global trend with gains. This divergence suggests that capital is fleeing US growth assets and rotating into defensive commodities and undervalued Asian value plays, likely due to perceived lower regulatory risk in China compared to the US tech sector.