[Morgan Stanley: Upgrades South Korea Stock Market Rating to Overweight, 36% Upside Potential After Deleveraging] Deep Tide TechFlow reports that on August 3, Morgan Stanley upgraded its rating on South Korean equities from Equal-weight to Overweight, citing recent 'deleveraging' as providing a better entry point for investors to participate in AI trades and the industrial supercycle theme. Strategists including Daniel K Blake wrote in a report that with significant unwinding of crowded trades and leveraged positions, the South Korea KOSPI Index still has 36% upside potential from its 9,000-point target. On Monday, the index fell as much as 5.5%, after a record 18% surge last Friday. Analysts stated that the recent sell-off was 'primarily driven by technical factors,' adding that 'the deleveraging process of leveraged ETFs, hedge fund leverage, and retail margin trading is already halfway through.' Morgan Stanley expects the KOSPI Index to fluctuate in the 5,500 to 10,500 range in the short term and believes that Samsung Electronics and SK Hynix will provide valuation support for the market. Stocks in industries such as industrials, defense, and finance are expected to benefit from favorable factors. (Jin10)