South Korea's KOSPI Rebounds 20% From July Low as Go Global Trade Revives
Updated
Updated · yardeniquicktakes.com · Aug 17
South Korea's KOSPI Rebounds 20% From July Low as Go Global Trade Revives
3 articles · Updated · yardeniquicktakes.com · Aug 17
Summary
More than 20% above its July 30 closing low, South Korea’s KOSPI has become the clearest sign that the July selloff in AI-linked markets has reversed.
That rebound follows a near-40% plunge from the June peak, when leveraged single-stock ETF unwinds, retail margin calls and a regulatory halt to new listings crushed the market.
Korea’s fundamentals have also strengthened: forward earnings have quintupled in a year, and its forward profit margin now leads emerging markets.
Month to date, South Korea’s country ETF is up 14.4% in dollar terms, ahead of Taiwan’s 10.9% and Japan’s 6.3%, while the US remains up 13.8% for the year.
The move fits a broader revival in the “Go Global” trade, with US-versus-rest-of-world valuation ratios still below their long-term uptrends despite the recent bounce.