Retail investors pile back into US equities

South Korean retail investors are returning to US equities, ramping up purchases of semiconductor stocks and benchmark exchange-traded funds as the won strengthens and the Kospi rally loses steam.

Net purchases of US stocks by local investors reached $1.95 billion between July 1 and 16 on a settlement basis, the highest monthly total in five months, according to the Korea Securities Depository.

The rebound follows an earlier slowdown, when retail investors turned net sellers in April and May bef ...