Korean stock ETFs are trading sharply lower this morning, with leveraged products bearing the brunt of the decline. The Southern East SK hynix Daily Leverage 2X Product (07709) has dropped 14.31% to HK$31.62, while the Southern Double Long Samsung Electronics (07747) is down 12.31% at HK$70.64, and the TR Korea (02848) has fallen 3.96% to HK$1,720.

The selloff follows a wave of weakness in US chip stocks overnight, which has now spilled over into Asian markets. Seoul's KOSPI index plunged more than 6% in early trading, triggering a circuit breaker. Among individual stocks, SK hynix tumbled over 9% at one point, while Samsung Electronics slid more than 7% during the session.

Adding to the pressure, long-dated sovereign bonds across the US, Germany, France, the UK, and Japan have been hit by a wave of selling, driven by inflation concerns, fiscal deficits, and a surge in AI-related financing demand. The 30-year US Treasury yield has climbed to its highest level since 2007. Market participants are now awaiting the release of the Federal Reserve's latest meeting minutes for further clues on the policy outlook.