00:00foreign institutional flows into korea just shifted and the currency is the reason here's
00:05the level that matters 6 500 on the cosby let's look at what's happening in korea's markets this
00:11week it's monday november 2nd here's why global investors are paying attention to korea today
00:16this week brings the u.s midterm elections on tuesday november 3rd if democrats take both
00:22chambers of congress trump administration policy on tariffs and fiscal matters could face stronger
00:28oversight and that raises uncertainty across global markets the korean one is also moving
00:34foreign investors who hold korean equities are seeing their dollar denominated returns change
00:39even when share prices stay flat let's look at the numbers here's what the numbers show
00:44between january 2nd and october 30th seoul economic daily tracked 202 trading days of cosby the one
00:51dollar rate and foreign net flows adjusted for the january exchange rate foreign selling clusters
00:58above a dollar adjusted index of 7 000 foreign investors sold on 77.5 percent of days when the
01:04index sat above 7 000 compared with 42.9 percent when it stayed below at last friday's rate of 1334
01:13.31
01:14per dollar a dollar adjusted cosby of 7 000 equals roughly 6478 on the headline index that's the zone
01:22where selling has historically intensified so what does this mean for global investors weighing korea
01:27right now the one strength is doing the heavy lifting a stronger one means the same dollar value
01:33corresponds to a lower cosby level so foreign holders see their dollar valuations rise even when prices
01:39stay put that is why the headline index can look cheap to domestic investors while foreign positioning
01:45still looks cautious earlier we said the exchange rate could shift foreign sentiment here's what that
01:51actually means for your allocation watch the dollar adjusted index not just the headline cosby before
01:58deciding whether korea deserves more weight or less what to watch this week brings the u.s midterm
02:03elections on november 3rd with currency adjusted valuation likely to matter more than the headline
02:09index for allocation decisions that's today's ai prism global investors this episode was produced with ai
02:16assistance based on seoul economic daily reporting ai prism is a juan ifra award-winning series we'll be back
02:24tomorrow
