Citi reduced its long exposure on South Korea's KOSPI by half, citing overheating and overbought conditions.
The KOSPI has surged 74% year‑to‑date in 2026, driven mainly by chipmaking and AI‑related technology stocks.
Citi highlighted rising global yields, especially long‑end breakouts in the UK and Japan, and higher oil prices steepening US yield curves.
Despite trimming, Citi kept half the position, leaving room for upside if the rally persists while monitoring rate‑related risks.