According to CoinMeta, Morgan Stanley has upgraded its rating on South Korean stocks from neutral to overweight, citing recent “leverage clearing” as providing better entry opportunities for investors to participate in artificial intelligence trading and the industrial supercycle theme. Strategist Daniel K and Blake pointed out in their report that with the significant liquidation of crowded trades and leveraged positions, South Korea’s KOSPI index still has 36% room to rise from its target level of 9,000 points. The index fell 5.5% on Monday but recorded a record 18% increase last Friday. Analysts said that the recent selling was “mainly due to technical factors” and noted that “the process of deleveraging leveraged ETF, hedge fund leverage, and retail margin trading is already halfway completed.” Morgan Stanley expects the KOSPI index to fluctuate in the range of 5,500 to 10,500 points in the short term and believes that Samsung Electronics and SK Hynix will provide valuation support for the market. Stocks in industries such as manufacturing, defense, and finance are expected to benefit from these favorable factors.