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Foreign investors rake in local tech stocks ahead of short-selling resumption


By Anna J. Park
Foreign investors are raking in Korean stocks this month on expectations that the market will remain bullish, as global interest rates as well as the so-called fear gauge or CBOE Volatility Index (VIX) are showing signs of stabilization.
The robust first-quarter earnings performances of Korean tech, semiconductor and new energy companies, as well as a strengthening Korean won, have also propelled foreign investors to return to Korean stock markets.
Korea s benchmark KOSPI ended at 3,182.38, Wednesday, up 0.42 percent from the previous trading session. Compared to a month ago, the KOSPI has risen by more than 136 points, or 4.4 percent. Foreign investors continued buying Korean stocks to the tune of 104 billion won ($93 million) during Wednesday s trading, and net purchased 2.55 trillion won worth of Korean stocks this month. ....

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Morgan Stanley Says Emerging Stocks May Have Peaked for the Year

(Bloomberg) After a surge to record highs in January, emerging-market stocks may have already peaked for the year, according to Morgan Stanley.There are eight reasons why the MSCI Emerging Markets Index won’t climb any further, analysts led by Jonathan Garner, the chief Asia emerging-market strategist based in Hong Kong, wrote in an 18-page report. The measure has overshot then fallen below the bank’s previously-set year-end target of 1,330.The arguments include falling copper prices, moderating balance sheets of Group-of-Four nations, peaking sentiment on reflation, tightening liquidity in China, a steadying U.S. dollar, stalling earnings revisions, “euphoric” fund inflows and the relative performance of Korean stocks.“If we are correct, the key to performance going forward is market, sector and stock selection,” the strategists said. “On the market side, we are most bullish India currently, with a favourable budget further boosting t ....

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