KOSPI Slides 21% from June Peak as Market Awaits Earnings Catalyst

According to Eugene Investment Securities research, South Korea's KOSPI index dropped 21% from its June 19 intraday peak of 9,385 points to 7,387 points by July 3. The researcher noted that after rising expectations caused by leverage-linked ETFs launched in May, much of the excess froth has now been cleared, with the index retreating near pre-ETF levels of around 8,228 points.

The key to market recovery hinges on whether corporate earnings beat elevated expectations. Eugene Investment Securities highlighted that late July U.S. technology giants' quarterly results will be a critical test, as these firms have maintained profit growth while sustaining large-scale investments. The timing matters: if earnings miss market consensus, momentum could rapidly fade.