Emerging market stocks post largest one-day gain since 2008, South Korean stocks soar to record highs
The MSCI Emerging Markets Index rose 6.6% on Friday, marking its best single-day performance since 2008. The index's July decline narrowed to 3.3%. Meanwhile, South Korea's KOSPI Composite Index soared by a record 18% on Friday. Analysts noted that Friday's rally may have resulted from short covering, with leverage not yet fully liquidated, so volatility could persist.
Emerging market stocks posted their largest gain in nearly two decades on Friday, ending a turbulent week and narrowing their monthly losses. Korea's benchmark stock index soared to a record high.
The MSCI Emerging Markets Index jumped 6.6% on Friday, marking its best single-day performance since 2008, with its July decline narrowing to 3.3%. Korea's KOSPI Composite Index surged 18% on Friday.
Florian Ielpo, Head of Macro at Lombard Odier Investment Managers, stated:
“After weeks of corrections, Asian tech stock positions have been partially cleared, so this rebound appears more like a short-covering rally than driven by other factors.”
Goldman Sachs strategists including Sunil Koul said the rally on Friday aligns with their somewhat positive outlook on certain areas of AI infrastructure, where profits continue to see strong growth. However, they cautioned that volatility may persist:
“Because although leveraged positions have declined from their highs, they have not been fully unwound yet.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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