{"id":112201,"date":"2024-10-09T15:59:56","date_gmt":"2024-10-09T08:59:56","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=112201"},"modified":"2024-10-09T15:59:56","modified_gmt":"2024-10-09T08:59:56","slug":"south-korea-joins-major-ftse-russell-index-after-bond-market-reforms","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=112201","title":{"rendered":"South Korea Joins Major FTSE Russell Index After Bond Market Reforms"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>(Bloomberg) &#8212; South Korea will join FTSE Russell\u2019s major global bond index next year, paving the way for tens of billions of dollars of inflows after an overhaul of the country\u2019s financial market infrastructure.<\/p>\n<p>Most Read from Bloomberg<\/p>\n<p>The index provider is also adding India to its gauge of emerging market debt from 2025, citing the government\u2019s progress in improving market access. Vietnamese stocks, meantime, remained on a watch list for an upgrade to emerging market, while Greek equities were added to a list for a potential inclusion as a developed market.<\/p>\n<p>The announcement comes just as the appeal of Asian debt grows due to falling yields in the US and Europe. When a new member gets added to a benchmark like FTSE\u2019s $30 trillion World Government Bond Index, global funds tracking the gauge need to buy that country\u2019s debt.<\/p>\n<p>Even so, the green light for Seoul is something of a surprise after Morgan Stanley and Goldman Sachs Group Inc. flagged the risk of a delay due to slow uptake on reforms.<\/p>\n<p>\u201cThis development is expected to have a positive impact on the Korean financial markets,\u201d said Kiyong Seong, lead Asia macro strategist at Societe Generale SA. He sees medium-term bonds rallying, with yields declining by 10 to 20 basis points and a strengthening in the won.<\/p>\n<p>India\u2019s debt showed little impact from the news, with the yield on the 10-year bond down two basis points to 6.79%. Korea\u2019s financial markets were shut for a holiday.<\/p>\n<p>FTSE Russell commended both Korea and India on the steps taken to improve access for foreign investors. Officials in Seoul keenly pursued inclusion in the WGBI, extending trading hours for the won and making it easier for overseas investors to settle trades via Euroclear.<\/p>\n<p>Accession is expected to attract $56 billion of inflows, with the fresh funds helping to manage government finances, according to the finance ministry in Seoul. For India, Mitsubishi UFJ Financial Group Inc. put the figure at $2 billion to $5 billion.<\/p>\n<p>Korea\u2019s weighting in the WGBI is projected to be 2.22%, after it gets phased in on a quarterly basis over a one-year period from November 2025.<\/p>\n<p>India\u2019s government, by contrast, kept a lower public profile. While joining flagship indexes can attract global funds, it can also pose risks to emerging economies frequently buffeted by capital outflows.<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p>\u201cWGBI is the most selective club for advanced economies,\u201d Finance Minister Choi Sang-mok said at a briefing in Seoul on Wednesday. Joining it shows \u201chow investors view the South Korean economy and markets.\u201d<\/p>\n<p>Emerging market investors have been almost uniformly bullish on India\u2019s debt and pushed for its inclusion in benchmarks.<\/p>\n<p>India\u2019s debt will be added to the FTSE\u2019s $4.7 trillion emerging market bond index as of next September over a six month period, with a final share of 9.35%. That\u2019ll be the second-highest after China.<\/p>\n<p>\u201cWe\u2019ve seen progress been made over the past few years that we\u2019ve tracked India,\u201d said Nikki Stefanelli, FTSE Russell\u2019s global head of FICC index policy. \u201cIt\u2019s really, I think, clear to us that it is part of the mainstream EM choice sets, becoming a more and more important part of those portfolios.\u201d<\/p>\n<p>India already joined JPMorgan Chase &amp; Co.\u2019s widely followed emerging market gauge in June to great fanfare despite being regarded as a reform laggard.<\/p>\n<p>India\u2019s index-eligible bonds have drawn roughly $14 billion of inflows this year. It\u2019s due to join Bloomberg\u2019s local currency government bond index in January.<\/p>\n<p>Bloomberg LP is the parent company of Bloomberg Index Services Ltd., which administers indexes that compete with those from other service providers.<\/p>\n<p>&#8211;With assistance from Shery Ahn, Haidi Lun, Ronojoy Mazumdar, Jaehyun Eom, Greg Ritchie, Joanna Ossinger, Maria Elena Vizcaino, Youkyung Lee and Ezra Fieser.<\/p>\n<p>(Adds finance minister\u2019s comment in eleventh paragraph)<\/p>\n<p>Most Read from Bloomberg Businessweek<\/p>\n<p>\u00a92024 Bloomberg L.P.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/south-korea-joins-major-ftse-201856279.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; South Korea will join FTSE Russell\u2019s major global bond index next year, paving the way for tens of billions of dollars of inflows after an overhaul of the &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=112201\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-112201","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/112201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=112201"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/112201\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=112201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=112201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=112201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}