Korea tests global investor appetite with longer trading hours

South Korea's Korea Exchange is testing the global investor appetite by extending trading hours into the evening, breaking away from traditional Asian market norms. The move aims to capture broader international participation, particularly during European business hours, following the stock market's AI-driven year. Korea Exchange will enable trading through 8pm for nearly all local stocks, marking a step towards its goal of 24-hour trading.

This is the first of its kind among major Asian exchanges, but follows the global trend toward around-the-clock markets, led by Nasdaq and the New York Stock Exchange. The longer trading window is expected to provide flexibility and efficiency, attracting more trading-oriented and hedge fund investors. However, liquidity remains a concern, as thin markets may lead to unexpected price movements and discourage large trades.

Despite these challenges, market watchers generally support the extension, as it enables investors to react to late-breaking news and reduces information asymmetry, enhancing market fairness.