KOSPI Index Rises Nearly 10% in Two Days as Leverage Reduction Reaches 75%

iconKuCoinFlash
Share
AI summary iconSummary
The KOSPI index rose nearly 10% over two days, with trading volume surging as SK Hynix and Samsung Electronics led the rally. JPMorgan noted that 75% of leverage in Korean leveraged ETFs has been unwound, while financing balances declined 13% to 33.4 trillion won. Foreign investors added over $10 billion in Korean stocks, signaling a shift in the Fear & Greed Index after a month-long outflow.

Odaily Planet Daily report: On Wednesday, South Korea’s KOSPI index surged as much as 6.2% during trading, nearing a 10% gain over the past two trading sessions. SK Hynix rose over 9%, Samsung Electronics climbed more than 6%, and semiconductor stocks led the market rally.

JPMorgan's latest report indicates that approximately 75% of the deleveraging process for South Korea's leveraged ETFs has been completed. According to data from the Korea Financial Investment Association, as of July 16, South Korea's margin loan balance declined to KRW 33.4 trillion (approximately $22.6 billion), a 13% decrease from its peak at the end of June.

Additionally, as of Wednesday morning, foreign investors had net purchased over $1 billion in South Korean stocks, marking the first significant inflow in about a month. (Bloomberg)

Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.