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Investor Excess Goes Global as Signs of Froth Emerge in Asia

  • South Korea stocks among global leaders, record falls in Japan
  • Optimism abounds despite rising Covid-19 cases, restrictions
Photographer: Shoko Takayasu/Bloomberg
Updated on

Asia’s financial markets are showing signs of froth as investment pours into nations that have so far contained the coronavirus better than their Western counterparts.

South Korea’s Kospi stock index is among the best performing major equity markets worldwide in 2021, China’s share benchmark is near a record and Japan’s Nikkei 225 index has scaled a new peak in dollar terms. An Asian currency gauge is on one of its longest winning streaks in more than two decades.