With US Stock Market Soaring... 'Money Move' to North America Funds

US Companies Drive Q3 Earnings
Dow & S&P 500 Indices Reach All-Time Highs
North America Funds Inflow of 283.5 Billion Won in One Month
Contrasted with Outflows from China and Europe Funds

[Asia Economy Reporter Song Hwajeong] As the U.S. stock market continues to hit record highs day after day, North American funds are attracting significant inflows.

According to financial information provider FnGuide on the 27th, North American funds have seen an inflow of 283.5 billion KRW over the past month. This was the largest inflow among major regional funds. During the same period, Chinese funds experienced an outflow of 107.2 billion KRW, while European and Russian funds saw outflows of 600 million KRW and 200 million KRW respectively. Indian and Japanese funds recorded inflows of 24.2 billion KRW and 300 million KRW respectively.

Since the beginning of the year, 2.8832 trillion KRW has flowed into North American funds. The assets under management, which were less than 2 trillion KRW a year ago, have now exceeded 5 trillion KRW. The number of funds increased from 56 to 64, and with the inflow of capital, net assets tripled from about 3.3 trillion KRW a year ago to 9.9986 trillion KRW.

The continuous inflow of funds into North American funds is due to the U.S. stock market's ongoing bull run, hitting record highs day after day. On the previous day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,756.88, up 15.73 points (0.04%) from the previous session. The S&P 500 index rose 8.31 points (0.18%) to 4,574.79, and the tech-heavy Nasdaq index ended the day at 15,235.71, up 9.01 points (0.06%). Both the Dow and S&P 500 indices reached record highs. The Dow hit record highs for three consecutive trading days, and the S&P 500 for two consecutive days. Year-to-date, the Dow has risen 16.83%, the S&P 500 by 21.8%, and the Nasdaq by 18.21%. During the same period, the KOSPI rose 7.61%. After a weak performance last month due to inflation concerns, tapering (asset purchase reduction), and debt ceiling negotiation difficulties, the U.S. stock market has turned bullish this month, driven by strong third-quarter corporate earnings, restarting its record-breaking streak.

Strong third-quarter corporate earnings are driving the rise in the U.S. stock market. According to KB Securities, as of the 22nd, 23% of S&P 500 companies have reported third-quarter earnings. Among them, 84% exceeded earnings per share (EPS) expectations, and 75% posted revenue surprises. KB Securities analyst Kim Sehwan said, "The average annual earnings growth rate is 32.7%, the third highest since 2010," adding, "Industries with high average earnings surprises include communication services, healthcare, materials, real estate, and utilities." Tesla posted a record third-quarter net profit of $1.62 billion, and with news of large orders, its stock price surpassed $1,000. Tesla became the first automaker to join the $1 trillion market capitalization club.

Economic indicators have also shown improvement, positively impacting stock prices. Recent key economic indicators such as new home sales and the Conference Board Consumer Confidence Index have surprised positively. The October Conference Board Consumer Confidence Index was 113.8, exceeding the forecast of 108. Kiwoom Securities analyst Han Jiyoung said, "U.S. real economy indicators, which had been sluggish for some time, have recently shown improvement, easing concerns about the spread of the Delta variant and inflation-driven economic slowdown," adding, "Although supply chain issues such as logistics disruptions and bottlenecks persist ahead of the full-scale year-end consumption season including Black Friday, consumption is expected to proceed steadily compared to initial concerns."

This content was produced with the assistance of AI translation services.