Jefferies: Recent Korean Stock Market Pullback Is "Natural and Healthy"

Odaily Planet Daily News Jefferies global equity strategy head Christopher Wood stated in a research report that the recent pullback in the South Korean stock market is "natural and healthy." Wood pointed out that amid AI fatigue sentiment, investors have begun to look for cheaper value stocks that have not yet participated in the AI trade. However, as the AI capital expenditure race continues, the "picks and shovels" trade still has momentum.

Wood stated that upstream suppliers will remain the biggest beneficiaries. The analyst added that the upcoming earnings announcements from hyperscale cloud service providers will provide the next stress test for the AI narrative. He noted that the key question is whether the anticipated data center boom will translate into actual construction projects. (Jin Shi)