The cooling AI boom drags down South Korea's stock market, while Nigeria becomes the best-performing stock market globally this year.

``` As concerns about the sustainability of market demand for artificial intelligence heat up, investors continue to pull out of South Korea’s stock market, pushing the previously world-leading Korean stock market into a technical bear market. Meanwhile, Nigeria’s stock market has surged to become the world’s top performer in dollar returns so far this year. According to data from Bloomberg on 92 global stock exchanges, Africa’s largest oil producer Nigeria saw its benchmark stock index deliver a total dollar return of 68% this year, surpassing the 66% rise in South Korea’s KOSPI index. Data shows that as of July 9, the ranking of total dollar returns for major global stock markets this year is as follows: Nigeria 68%, Korea 66%, Ghana 57%, Taiwan 54%. This week, Korea’s KOSPI index fell into a technical bear market, dropping a cumulative 22% since its June 19 high. Investors have once again begun to doubt whether demand for AI-related stocks can be sustained, leading to capital outflows from Korean equities. The Korean won has already depreciated by nearly 5% this year, making it the fourth worst-performing currency in Asia. In contrast, Nigeria’s stock market has continued to rise, aided by ongoing economic reforms, rising international oil prices, and improved foreign exchange supply. The naira has appreciated by 4% since January this year. In addition, there was news this week that S&P Dow Jones Indices is considering reclassifying Nigeria as a frontier market, a move that could further boost the country’s appeal to international investors. Arnold Dublin-Green, Managing Director of RC Asset Management, stated that global capital institutions are reassessing Nigeria, as reflected in the country’s assets being likely included in more international indices and its recent economic reforms gaining more market recognition. “Don’t forget, Nigeria started from a very low base, and these challenges were exactly the reasons for its earlier downgrade. Now, things are improving.” He also noted: “The rally in Asian markets is a totally different story and is almost entirely centered around a single theme: profits from companies like SK Hynix, Samsung Electronics, and TSMC.” Nigeria’s stock rally this year has been mainly driven by the financial services sector, with Fortis Global Insurance Plc delivering an astonishing dollar return of 1,483%, making it the best-performing individual stock. Unlike Korea’s KOSPI, Nigerian-listed companies are hardly involved in artificial intelligence industries. According to Damilola Okeleye, a Stonex Nigeria Financial trader based in Lagos, factors driving capital inflows to Nigeria’s stock market are not AI, but improvements in broader economic fundamentals. He said Nigeria’s ongoing economic reforms, along with the possible future listing of Dangote Petroleum Refinery and Petrochemicals FZE—the largest oil processing company in Africa—have been key motivators behind the continued surge in the country’s stock market so far this year. Risk Warning and Disclaimer The market carries risks and investment must be cautious. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are appropriate for their specific circumstances. Investing based on this content is at your own risk. ```