Gate Research Institute said in its latest report on Gate TradFi’s link to global markets that equity returns across the U.S., Japan, South Korea and Hong Kong are driven by different factors. According to the report, U.S. stocks rely on corporate earnings and technology investment, Japanese equities benefit from governance reform and better capital efficiency, South Korean stocks are mainly tied to semiconductor cycles, and Hong Kong stocks depend on Chinese corporate earnings, capital flows and changes in risk premiums. Since 2016, U.S. and South Korean equities have posted similar annualized returns, though South Korea has shown noticeably higher volatility and drawdowns. The report added that Japanese stocks offer some diversification value, while Hong Kong equities have gone through a longer valuation repair cycle. Backtesting showed that cross-market diversification can reduce dependence on any single market, and trend rotation may help improve drawdowns, though it cannot remove systemic risk and higher turnover may raise trading costs. Gate TradFi has integrated the four markets into one stock account, covering more than 12,800 stocks and ETFs globally.
Gate Research Institute said in its latest report on Gate TradFi’s connection to global markets that stocks in the United States, Japan, South Korea and Hong Kong have distinct return drivers.
The report said U.S. equities are supported by corporate earnings and technology investment, Japanese stocks benefit from governance reform and improved capital efficiency, South Korean equities are driven mainly by semiconductor cycles, and Hong Kong stocks depend on Chinese corporate earnings, capital flows and changes in risk premiums.
Since 2016, U.S. and South Korean stocks have delivered similar annualized returns, according to the report, but South Korea has shown noticeably higher volatility and drawdowns. Japanese equities offer some diversification value, while Hong Kong stocks have gone through a longer valuation repair cycle.
Backtesting cited in the report showed that diversification across markets can reduce dependence on any single market. Trend rotation can also help improve drawdowns, though it cannot eliminate systemic risk, and higher turnover may increase trading costs.
Gate TradFi has added U.S., Japanese, South Korean and Hong Kong stocks to a unified stock account. The platform covers more than 10,000 U.S. stocks and ETFs, over 1,500 Hong Kong stocks, more than 1,000 South Korean stocks and about 300 Japanese stocks, for a total of more than 12,800 stock and ETF assets globally.
The platform also connects market data for indices, foreign exchange and metals, supporting cross-regional market comparison, security screening and portfolio management within the same trading environment, the report said.
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