Gate Research: US, Japanese, Korean, and Hong Kong Stocks Have Different Return Drivers; Gate Stocks Connect Four Core Markets
Odaily News: Gate Research has released its latest report on Gate TradFi connecting global markets, noting that the four markets of the US, Japan, Korea, and Hong Kong have different sources of returns: US stocks rely on corporate earnings and technology investment, Japanese stocks benefit from governance reform and improved capital efficiency, Korean stocks are mainly driven by the semiconductor cycle, and Hong Kong stocks depend on Chinese corporate earnings, capital flows, and changes in risk premiums.
Since 2016, the annualized returns of US and Korean stocks have been similar, but Korean stocks have significantly higher volatility and drawdowns; Japanese stocks offer some diversification value, while Hong Kong stocks have experienced a longer valuation recovery cycle. Backtesting shows that cross-market diversification can reduce dependence on a single market, and trend rotation can also help improve drawdowns, but it cannot eliminate systemic risk, and higher turnover may increase trading costs.
Gate TradFi incorporates US, Japanese, Korean, and Hong Kong stocks into a unified stock account, covering more than 10,000 US stocks and ETFs, over 1,500 Hong Kong stocks, more than 1,000 Korean stocks, and approximately 300 Japanese stocks, totaling coverage of over 12,800 stocks and ETF assets globally. The platform further connects index, forex, and metals market data, supporting investors in conducting cross-regional market comparisons, asset screening, and portfolio management within the same trading environment, expanding multi-asset observation and trading scenarios.
