The iShares MSCI South Korea ETF (EWY) experienced a significant intraday surge, soaring 5.00% during the trading session. This sharp upward movement highlights the volatile nature of the South Korean market.
The rally was primarily driven by local retail investors who seized buying opportunities during a wave of selling by foreign funds, leading to a rapid market recovery. Concurrently, a positive shift in the economic outlook provided further support, with Citigroup revising upward its growth forecasts for South Korea and suggesting that the Bank of Korea's pace of interest rate increases could be faster than expected, signaling confidence in the economy's resilience.
This combination of aggressive retail buying countering foreign outflows and an improved macroeconomic backdrop helped the ETF and the broader South Korean market rebound strongly from earlier losses.
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