KOSPI Jumps Nearly 10% in Two Sessions as 75% of Leveraged ETF Deleveraging Nears Completion
AI Market Summary
South Korea's KOSPI extended a sharp two-day rally as semiconductor leaders outperformed and JPMorgan flagged that roughly 75% of leveraged ETF deleveraging is complete. A 13% drop in margin balances from late-June highs suggests forced selling pressure is easing. The first meaningful foreign net inflow in about a month adds support, potentially improving near-term risk appetite toward Korean equities and cyclicals.
Impact level
● Medium
Affected assets
NCSIKOSPI2USD/USDT-0.37%
AI Insight · NCSIKOSPI2USD/USDTAI Insight
▲ Bullish
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Odaily Planet Daily reports that South Korea's KOSPI index extended its rally on Wednesday, rising as much as 6.2% intraday and bringing gains over the past two trading sessions close to 10%. Semiconductor names led the advance, with SK Hynix up more than 9% and Samsung Electronics gaining over 6%.
JPMorgan said in a recent report that roughly 75% of the deleveraging in South Korea's leveraged ETFs has already been completed. Data from the Korea Financial Investment Association show that outstanding margin loans fell to KRW 33.4 trillion (about $22.6 billion) as of July 16, down 13% from the late-June peak.
Bloomberg reported that foreign investors had net bought more than $1 billion of South Korean equities as of Wednesday morning, the first notable inflow in about a month.
