JPMorgan says the correction in the Korean stock market may be orderly, remains optimistic about KOSPI2 bullish exposure

智通财经2026/10/06 00:56

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JPMorgan pointed out that, considering investors' positioning and profit growth, the correction in the South Korean stock market following the July AI/memory recovery could be more orderly than in previous AI rebound cycles. Analysts including Tony Lee wrote in a report that the current trend “appears more controlled rather than explosive,” citing an “improved gamma backdrop” that reduces the risks of mechanically magnified volatility and per-share earnings revision. Although Korean memory fundamentals have improved, they remain lagging behind after July's AI/memory recovery and still have room to catch up, particularly if macroeconomic factors such as high yields, oil prices, and risk appetite in Asian markets stabilize. South Korea's volatility environment improved in September, with dealers holding long gamma positions on equities totaling about $430 million, the largest gamma exposure in the past year. “Given the expensive pricing on the call option side, we believe it is most appropriate to hold KOSPI2 call exposure via structured products with rich convexity characteristics.” Ahead of Q3 earnings reports from Samsung and SK Hynix, analysts consider “HBM demand, pricing and product mix, exchange rates, as well as capex management and shareholder return updates as key catalysts, and the market could see significant volatility.”

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