South Korean stocks: a bet on global growth

South Korean stocks have slid by around 5% this year, but the outlook is improving. The Kospi index has always been highly exposed to the global cycle, since exports account for 55% of GDP. Tech giant Samsung comprises 20% of the market and car group Hyundai makes up 5%.

The weather-related disruptions to global trade of the past few months now seem to be wearing off, notes Morgan Stanley. Korean exports grew by 9% year-on-year in April, from 5% in March.

America, where the recovery appears to be strengthening, is especially important. Every 1% change in US growth implies a [...]

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