ASIA PACIFIC EQUITY RESEARCH

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ASIA PACIFIC EQUITY RESEARCH

Asia Pacific Equity Research

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Asia First to Market 25 June 2026

Top Stories

Korea Equity Strategy, South Korea (Mixo Das)

Non-discretionary flows a headwind, but fundamental upside and boost to national wealth still in

play

We remain directionally bullish on Korea equities despite ongoing forced foreign selling and elevated

volatility (both of which are likely to persist). This is driven by a combination of our constructive view on

AI and resultant hardware earnings (punctuated at times by narrative vulnerabilities - see below), added

earnings tailwinds from growth in a variety of (AI-adjacent and other) Industrials, potential wealth-effect and

NIM boost to Financials, and ongoing (if incremental) valuation tailwinds from the governance

reforms (which will likely come back to prominence later this year). In addition, it is noteworthy that the

earnings of the Tech names participating in the AI datacenter buildout are now large enough to be

meaningful at a macro level (Figure 28) - creating a wealth boost not just for corporates and households, but

even for the government - enabling long-term measures and planning. As such, we continue to recommend

adding on any dips and staying with maximum exposure in Korea. Korea remains our most preferred market

in the region and we raise our 12m-out base/bull/bear case KOSPI targets to 12,500/15,000/8,000.

| India IT Services, India (Ankur Rudra, CFA / Bhavik Mehta, CFA)

Numbers vs.