Go to contents

Global stock market rally excludes only Korea

Posted May. 20, 2024 07:50,   

Updated May. 20, 2024 07:50


While stock markets in major countries worldwide, including the U.S., Europe, and Japan, are soaring to all-time highs, the Korean stock market continues to grapple with challenges, struggling to surpass the 2,700 level. Korea's stock market growth rate has dwindled since the beginning of the year, lagging behind indexes of 10 major countries. The absence of leading stocks capable of propelling the market, such as those in artificial intelligence (AI), coupled with the government's value-up program yielding minimal impact, has resulted in a lackluster market trend. Consequently, concerns arise regarding Korea's potential exclusion from the global rally fueled by favorable factors like anticipated interest rate cuts and robust corporate performance.

According to Bloomberg News on Saturday (local time), 14 of the world's top 20 stock markets have recently reached record highs. On Friday, the Dow Jones Industrial Average closed above the 40,000 mark for the first time, while both the Standard & Poor's (S&P) 500 and Nasdaq indexes shattered their previous records on Wednesday. Canada's S&P/TSX Composite Index also achieved an all-time high on Friday.

North American markets are booming, and European and Asian counterparts are experiencing significant surges. On Wednesday, pan-European indices like the Euro STOXX 600, Britain's FTSE 100, and Germany's DAX index all reached unprecedented highs. Japan's Nikkei 225, which hit a record peak in March, has surged over 16% this year, following a remarkable 28% rise last year. Bloomberg notes that the Indian stock market is displaying robust growth, outpacing China, fueled by government investment pledges and economic expansion. Furthermore, the Australian index once again ascends towards its peak, which reached March.

신아형 abro@donga.com