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🇹🇼 Taiwan /Economy & Trade

Asian Markets Rebound Sharply Amidst Panic, Volatility Expected

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Asian stock markets, including South Korea, Taiwan, and Japan, rebounded strongly after a period of significant decline.
  • Financial commentator Xie Jinhe described the rebound as an "extreme bounce" driven by panic, suggesting continued volatility in August.
  • South Korea's market experienced a severe downturn, impacting young investors and leading to social issues, though major tech stocks like Hynix and Samsung saw substantial gains.

Asian stock markets staged a powerful rally, with South Korea, Taiwan, and Japan experiencing sharp rebounds after weeks of steep declines. Financial commentator Xie Jinhe characterized the surge as an "extreme bounce" born from panic, predicting further volatility for global markets in August.

Markets are born in despair, grow in doubt, mature in optimism, and die in euphoria!

— Xie JinheXie Jinhe quoted a Wall Street adage to describe the current market sentiment.

Xie Jinhe, chairman of the},wealth media group, noted that the market's movement aligns with the adage, "Markets are born in despair, grow in doubt, mature in optimism, and die in euphoria." He specifically pointed to South Korea's market, which fell 43.93% from its peak. He suggested that if Taiwan's weighted index followed suit, it could drop to around 28,000 points.

The downturn in South Korea has had severe social consequences. Xie detailed incidents of families affected by stock market losses and a young investor resorting to violence after significant financial setbacks. The country, known for its high suicide rate, has seen increased social problems amid the market storm. Authorities have heightened patrols on bridges and installed AI surveillance systems to prevent suicides.

This is all the extreme of panic, a limit rebound with one chance to win or lose.

— Xie JinheXie Jinhe commented on the recent stock market surge in Asia.

Despite the broader market turmoil, major tech companies like SK Hynix and Samsung have shown remarkable resilience. SK Hynix saw a 29.95% jump, and Samsung rose 26.81% in a single day. Xie highlighted that Samsung's first-half profits reached 136.5 trillion won, potentially reaching 300 trillion won for the year, a figure comparable to its earnings over the past 40 years. SK Hynix also reported substantial profits, with its stock trading at a price-to-earnings ratio of just 3 times its earnings after a 58% drop earlier in the year. Xie believes these tech giants will continue to influence market movements in August.

From this extreme of panic, looking into August, global stock markets will continue to watch Hynix and Samsung continue to bounce!

— Xie JinheXie Jinhe offered a prediction for global stock market movements in August.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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