Nomura: Korean stock selloff appears to have been excessive

Nomura analysts led by Cindy Park said South Korea's KOSPI index appears oversold after falling 18% since August to around 5,400 points, a steeper decline than other major global markets amid rising interest rates, high oil prices and other risk factors. The brokerage set a three-month target range of 7,500-8,000 for the index to reflect macroeconomic and AI-related risks, while keeping its long-term target of 10,000 unchanged. Nomura flagged AI investment, expanded corporate buybacks and market reforms aimed at boosting corporate value as potential catalysts for a rebound. The call matters because it signals that one of the region's worst-hit equity benchmarks may be nearing a trough, with the gap between the near-term and long-term targets implying substantial upside if catalysts materialize. Investors will watch whether buyback programs and value-up reforms accelerate and whether global rate and oil pressures ease.