(Bloomberg) -- South Korea’s Kospi Index is set to erase year-to-date losses of as much as 34% as traders shift funds to emerging-market assets betting on a global rebound.
The benchmark gained 1% as of 9:05 a.m. in Seoul to 2,203, exceeding last year’s close of 2197.67 and becoming the first major Asian index to do so. Samsung Electronics (OTC:SSNLF) Co., the nation’s biggest stock that accounts for 24% weighting in Kospi, gained 1.3%.
South Korean stocks are the biggest beneficiaries of the global reopenings following the coronavirus lockdowns, when it comes to emerging markets, according to Jefferies (NYSE:JEF) Financial Group Inc. In addition to benefiting from a decline in the U.S. dollar, steeper U.S. bond yields and expanding money supply in China, Korea stands out as it has been able to fight the virus better than peers, the broker said in a note last week.
The nation’s mom and pop investors have added 25.7 trillion won ($21.3 billion) of stocks in Kospi this year, while overseas traders offloaded a net 23.2 trillion won.
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