The iShares MSCI South Korea ETF (EWY) surged 5.00% during intraday trading on Monday, marking a significant upward movement for the fund that tracks South Korean equities.
The sharp gain followed an announcement by the Bank of Korea that it will directly purchase government bonds worth 3 trillion won (approximately $2.01 billion) to address heightened volatility in the bond market. The central bank's intervention came as the yield on South Korea's benchmark 10-year government bond had surged to its highest level since November 2023 during the trading session.
Investors interpreted the bond purchase plan as a stabilizing measure that supports financial market conditions, boosting confidence in South Korean assets and driving the ETF's price higher.
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