Reserve Bank of Australia: inflation remains too high.

Macquarie analysts say KOSPI should rebound in the near term led by Samsung Electronics and SK Hynix. July’s extreme volatility was concentrated in those two names, which accounted for roughly 71% of the market’s total market-cap loss. With foreign and institutional outflows stabilizing, concentrated holdings being reallocated, and margin balances at reasonable levels, volatility is easing and the risk of sudden large swings is limited. Macquarie expects earnings revisions to drive the KOSPI higher and believes Samsung and SK Hynix can overcome peak-demand and competition concerns; their rapid earnings growth should translate into meaningful shareholder returns. Macquarie maintains a KOSPI target of 8,000.

Reserve Bank of Australia Governor Bullock said reasons for raising rates include inf remaining too high and upside risks from the Middle East.