Daily Brief Financials: Korea Stock Exchange Kospi Index, JPY, USD, Manappuram Finance, Keppel Corp, Korea Stock Exchange KOSPI 200, Migalo Holdings and more

• The push for MSCI DM inclusion drove Korea’s full short-selling resumption, clearing the KRX index rights issue, allowing MSCI to roll out derivatives, making full short selling the final step.
• With full short-selling back, traders are watching for large-scale quant funds to return, potentially boosting liquidity across the market alongside the ATS launch, after years of individual large-cap setups.
• The market is watching how full short-selling resumption narrows bid-ask spreads and impacts sector rotation, prompting traders to prepare setups for the broader market shift.

• European peace optimism driving continental asset prices, especially equities, while Chinese tech stocks sizzle hot in Asia
• US real yields impacting global risky asset markets, with Fed’s dovish reaction function leading to plummeting real yields
• Dollar likely to stay soggy in short term until potential FOMC hawkishness or tariff-related events reignite Trump trades and boost dollar bullishness, while yen strength may not be sustainable due to BOJ policy and yield spread factors.

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• Fed is unlikely to cut rates in the near term, with a majority of participants pointing to a still restrictive policy stance
• Front end treasury yields are anchored by Fed’s current stance, leading to low range volatility and ongoing support for the treasury market
• Discussion on balance sheet policy suggests QT may end earlier than expected, with reinvestment of MBS proceeds likely to be in T bills, potentially impacting term premium and yield curve dynamics

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Manappuram Finance is a leading Indian NBFC specializing in gold loans, offering financial services to lower socio-economic backgrounds with 5,286 branches across India.
• The RBI had barred the microfinance arm Aashirwad Micro Finance from sanctioning and disbursing loans due to non-compliance.  Company is planning for  IPO and intended to raise INR 1500 Crore.
• Manappuram is committed to growing its secured lending portfolio, including gold loans and other secured assets and anticipates overall growth of 15%-18% in the consolidated loan book.

• Keppel is an asset manager and operator with business in infrastructure, real estate and connectivity
• The company is undergoing transformation from an asset-heavy conglomerate to an asset light manager with strong recurring income
• We also like the strong capital management and its focus on total shareholder returns, valuation is not demanding

• After eight consecutive days of gains, the Kospi rally paused in the last two sessions, closing just above 350.
• The 350 area aligns with several key levels from the past three years.
• For those looking to hedge recent gains, we recommend two preferred hedge strategies.