The CSOP SK Hynix Daily (2x) Leveraged Product tumbled 7.07% in early trading, mirroring a sharp decline in the underlying SK Hynix shares as multiple headwinds converged.

The slump was triggered by a broader sell-off across Asian markets, sparked by growing investor skepticism over whether massive artificial intelligence capital expenditure can translate into profits. Disappointing earnings from Tesla and Alphabet's raised spending forecast fanned fears of an AI spending bubble, hitting major tech and chip stocks. South Korea's KOSPI index slid 3%, with SK Hynix falling over 4% as the sentiment soured. Escalating Middle East tensions further rattled investors, with Brent crude breaking above $100 a barrel and reigniting inflation worries that could prompt central banks to hike rates.

Adding to the pressure, the Seoul High Court is scheduled to deliver its final verdict today in the divorce asset division case between SK hynix chairman Chey Tae-won and his ex-wife. The ruling could force a significant transfer of shares, potentially disrupting the group's ownership structure and creating short-term uncertainty for the stock. The leveraged nature of the product amplified the decline, resulting in the 7.07% drop.