economy
South Korea's stock market just had one of its worst days ever. Why Morgan Stanley says it's not breaking down
The Kospi index fell about 10% in Tuesday's session, marking its worst session since March.
TL;DR
- The Kospi index fell approximately 10% on Tuesday, its worst day since March and sixth worst on record.
- The decline is attributed to higher exposure to memory stocks which tumbled amid a global chip rout.
- Morgan Stanley analyst Joon Seok believes this is a temporary breather, not a prolonged downturn, as stock fundamentals remain intact.
- The pullback follows a substantial surge in the Kospi index, indicating investors taking profits.
- Concerns about tighter monetary policy also contribute to investor caution.
- The analyst expects a bumpier second half of 2026 but maintains a target of 9,000 for the Kospi.