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Korean capital markets set to stabilize amid growing hope of rate freeze

Korea s capital markets will gain gradual traction for a soft landing, as the Bank of Korea (BOK) is forecast to end its rate hike cycle at the current level amid diminishing inflationary woes here, analysts said Tuesday. Even if local financial markets are still clouded with uncertainties ahead of a full-fledged recovery, market participants will slowly regain their confidence in the Korean economy, which is forecast to face a lower risk of additional volatility, they said.

Shares related to China s eased COVID lockdowns soar

Korea s COVID-19 reopening-related stocks are on a rally amid growing hopes of China s lifting of strict lockdown measures, multiple data showed. According to data from market tracker, FnGuide, the average profitability of 31 funds related to consumer goods reached 4.57 percent for a month until Dec. 16. This was far above that of local stock funds which reported negative 5 percent during the same period. Stock prices for consumer goods companies are generally considered key beneficiaries of loosening pandemic restrictions.

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