Morgan Stanley upgraded its South Korean stock market rating to overweight from maintain weight. A strategy team led by Daniel Blake set a KOSPI target of 9,000. This projection suggests a potential 36% upside from current market levels.
The bank characterizes the recent market decline as a technical selloff rather than a fundamental deterioration. Investors drove the index lower by unwinding leveraged positions.
Valuations have reached historical lows as the deleveraging process passes its midpoint. Morgan Stanley identifies an attractive entry point for stocks poised to benefit from AI and semiconductor recoveries.