In-depth: Global stocks

The Korean stock markets closed just a little while ago, so it's time for a check-up.
And for that we're joined today by Daniel Yoo, Global Strategist at Kiwoom Securities.
Mr. Yoo, good to talk to you. Thanks for joining us today.
You're welcome.
It's another day of gains for the KOSPI. We're up more than 50 points for the week.
Mr. Yoo, what happened on the Korean markets today and what's been driving the action?
At the beginning of the year, most Korean investors and newspaper article talked about Korea being in a crisis. The reasons they were so bearish on the Korean market included North Korea political uncertainty, the minimum wage issue, exports showing a sharp drop, weak domestic consumption leading to a weak economic growth rate.
However, we had been recommending to buy Korea, along with China's Shenzhen index, and the US Nasdaq index.
The Korean market is undervalued significantly with only 0.8x book value.
DRAM and the semiconductor industry are showing weak earnings but a turnaround is expected.
If the global market is strong, the Korean equity market will be strong as well, even though the rise might be less than the Chinese Shenzhen and the Nasdaq.
Earnings are out for Korean firms this week, and while it looks like revenues were up, profits were down. As usual, the market is highly dependent on what's happening at Samsung Electronics in particular, and we've Samsung shares leading the gains despite the lower profits. Where do you see earnings down the road?
The key concern is sharp drop in earnings.
Samsung and SK Hynix earnings to drop 50%.
But overall market is expected to see 22.76% drop in earnings.
Therefore, other sectors are expected to turn around this year.
Also, the DRAM sector is expected to turn around in earnings in H2 of 2019.
Offstage in the meantime, the U.S. and China are looking for a deal on trade. Do you think they'll get one, and what would that means for equities?
Yes. The global market is showing a continued rise.
PMI recovery, trade talks moving in the right direction, etc.
No recession. Recovery in 2H likely.
We believe a US-China trade agreement will be made in H1 of 2019. Therefore, the global economic growth rate is very likely to pick up in H2 of 2019.
Equity market will do well this year.
Ok, we'll have to leave it there today.
Thanks for your insights today, Mr. Yoo.