South Korea is not only one of the markets that’s recovering the fastest from the impact of the coronavirus pandemic, it’s also showing one of the broadest rebounds.
The benchmark Kospi index has almost 35% of its members trading above their 200-day moving average, returning to levels last seen in mid-February, just before an explosion of virus cases in the country. That’s ahead of the 30% of stocks trending higher in the wider MSCI Asia Pacific Index, according to data compiled by Bloomberg.
The Kospi has rallied about 33% from a decade low in March, with only seven of its almost 800 members posting a decline in that time. The index is also one of the top performers among major equity markets in Asia and well ahead of the regional benchmark’s 20% rally since its low. The South Korean index climbed 0.6% Monday.
The market breadth of South Korea’s rally is especially evident given its largest member, Samsung Electronics Co., has risen only 15% from its March trough. The coronavirus crisis has been anet negative for global chipmakers, hampered by lower consumer demand for new PCs and smartphones despite greater interest in online services amid the lockdowns.
18,937 in U.S.Most new cases today
-17% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.091 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-4.8% Global GDP Tracker (annualized), April