Jefferies: Recent correction in South Korean stock market is "natural and healthy"

Odaily Planet Daily News Jefferies global equity strategy head Christopher Wood said in a research report that the recent correction in the South Korean stock market is "natural and healthy." Wood pointed out that amid AI fatigue sentiment, investors are beginning to look for cheaper value stocks not yet involved in AI trading. However, as the AI capital expenditure race continues, "selling shovels" trades still have staying power.

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