Asia Market Daily: Hong Kong elderly investor loses HK$13M in crypto scam as Korean market plunges

A 70-year-old Hong Kong resident fell victim to an elaborate cryptocurrency investment scam, losing over HK$13 million (US$1.66 million). The victim was initially contacted through WhatsApp by a scammer posing as a Singapore-based crypto investment expert. The fraudster convinced the victim to purchase USDT and ETH, then transfer assets to addresses specified through a fake investment app. False profit displays were shown to encourage continued investment. The victim discovered the fraud when attempting to withdraw funds and subsequently reported the case to police. Hong Kong authorities noted a surge in such schemes, with over 40 investment scam cases reported in the past week alone, resulting in approximately HK$50 million in total losses. Police urged the public to verify investment platforms and avoid unsolicited investment advice.

South Korea's equity market experienced significant weakness, with the KOSPI index closing down 3.26% at 6,684.38. Major technology stocks led the decline, including SK Hynix falling 6.34% and Samsung Electronics dropping 4.04%. The selloff reflects broader concerns over artificial intelligence spending trends and highlights concentration risk in the Korean market, where these two companies have driven nearly all recent gains. Market analysts note the heavy reliance on a narrow set of stocks poses systemic risks for the broader index.