Korea’s Small-Cap Kosdaq Index Surges on Report of Tax Breaks

South Korea’s Kosdaq Index surged after a local media report that the government is planning to roll out tax incentives and take steps to increase buying of stocks in the small-cap gauge by pension funds and other institutions.

The Kosdaq jumped 3.7% Friday, while the benchmark Kospi Index fell 1.5%. That marked the smaller index’s biggest daily outperformance since 2001, according to Bloomberg-compiled data.