The Korea Composite Stock Price Index (KOSPI) experienced a devastating peak-to-trough crash of 44% last month.

The KOSPI skyrocketed more than 170% in FY26 due to multiple factors including the artificial intelligence (AI) tailwind.

South Korean chip makers Samsung Electronics and SK Hynix Inc surged a crazy 459% and 807%, respectively, in FY26.

They make up about half of the market’s total market cap, which means KOSPI is a concentrated bet despite being home to 800 stocks.

It’s no surprise that after stock price gains like that, some investors got a bit wary and chose to take their profits and run.

That’s one reason why the KOSPI crashed on 23 June, falling 10% in one day, and sparking a five-week sell-off.

SK Hynix shares lost just over half their value, and Samsung shares dropped 41% before the KOSPI bottomed out on 29 July.

Australian investors who own SK Hynix and Samsung shares directly felt the full force of that fall.

They also felt it via the iShares MSCI South Korea AUD ETF (ASX: IKO) — the Australian market’s top performing ETF of FY26.

IKO ETF delivered an amazing total return of 171% in FY26. The ASX IKO unit price fell 37% during the KOSPI crash.

What’s happened to KOSPI and IKO ETF since the crash?

For the record, IKO ETF doesn’t track the KOSPI.

Instead, the fund seeks to mimic the performance of the MSCI Korea 25/50 Index before fees.

The MSCI Korea 25/50 Index focuses on South Korean large-caps and mid-caps, but in practical terms, it captures 85% of the KOSPI.

SK Hynix and Samsung Electronics make up 46% of the MSCI Korea 25/50 Index market cap.

IKO ETF has been trading for a long time.

Its inception was in the US in May 2000. It was listed on the ASX in November 2017.

IKO was subsequently restructured into an Australian-domiciled ETF in October 2018.

As reflected in IKO ETF’s history in the chart above, the South Korean market has not been a strong performer over the long term.

There are many reasons for this, and it’s summed up by what the professional traders used to call the ‘Korea discount’.

We explain the Korea discount in an earlier story.

Despite its incredible 171% return in FY26, IKO remains a relatively small ASX ETF.

Aussie investors have put about $213 million into the ETF to date, according to ASX data.

That compares to $25.377 billion invested in the market’s largest ETF, Vanguard Australian Shares Index ETF (ASX: VAS).

While small in comparative scale, it’s worth noting the relatively rapid rise in investment in IKO ETF.

ASX investors piled in while watching the KOSPI’s stratospheric rise.

Between January and June 2026 inclusive, IKO’s funds under management rose 40%.

Australians are much more in-tune with overseas markets than they used to be.

Experts agree our home bias toward ASX 200 shares is shifting.

Since bottoming out on 29 July, the KOSPI has rebounded 23%, and IKO has recovered 25%.

SK Hynix shares have lifted 20% and Samsung Electronics stock is 30% higher.

The AI investment megatrend has a long way to go.

As RMIT University finance professor Angel Zhong points out, markets “often move through cycles of exuberance and reassessment”.

Zhong said AI would continue to transform industries:

The AI revolution is creating genuine economic opportunities, but markets often price in expectations long before those benefits are fully realised.

The post How the KOSPI crash impacted ASX investors appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares have rebounded over the past month as inflation and interest-rate concerns have eased.

At the time of writing, the All Ordinaries Index (ASX: XAO) is up around 0.5% for the day. The index is also 3% higher year to date.

The increase is great news for investors, but now many have their eye focused on which ASX shares could climb even higher over the next 12 months.

Here are three stocks which are tipped to outperform the index, and they’re all forecast to jump up to 66% higher.

Catalyst Metals Ltd (ASX: CYL)

Catalyst Metals shares are down around 1.5% and trading at $6.46 a piece, at the time of writing. For the year-to-date, the shares are down around 12%.

It’s been a rocky 12 months for the ASX gold producer’s shares.

The share price spiked to an all-time high in January when the company announced a significant new high-grade discovery at its Plutonic Gold Belt. 

But then the gold stock then shed around 52% of its value to an annual low in early-June. The crash followed headwinds from a weaker gold price, higher mining costs and an investor rotation away from gold shares.

But now it looks like a recovery is in sight and the previous headwinds are turning into tailwinds. Catalyst Metals shares have now rebounded around 37% from the June-low.

Catalyst Metals has a long period of operational consistency and organic growth and looking ahead, the miner expects production to increase towards the latter half of FY26 as well. 

Market Index data shows that brokers agree a strong buy rating on the rate the ASX shares. They tip an average target price of $10.75. That implies a potential 66% upside at the time of writing.

Predictive Discovery Ltd (ASX: PDI)

Predictive Discovery has suffered the same headwinds as Catalyst Metals this year. Higher mining costs, weaker gold prices, and an overall investor rotation away from ASX gold shares into larger, more stable assets, has seen a steep investor sell off. 

The shares fell to an eight-month low of 61 cents a piece in mid-July but have now rebounded around 41%. At the time of writing, the shares are up around 1% for the day and changing hands at 86 cents each.

They’re now 17% higher for the year-to-date and a huge 95% higher than 12 months ago.

And the experts think the gold miner’s shares can keep climbing higher too.

Predictive Discovery’s production numbers are expected to increase in the latter half of the year, with the miner actively developing gold deposits in Guinea’s Siguiri Basin. 

Market Index data shows brokers agree to a strong buy rating on the ASX shares. The maximum target price is $1.35 per share, which implies a potential 57% upside at the time of writing.

Judo Capital Holdings Ltd (ASX: JDO)

Judo was one of the strongest-performing bank shares on the ASX earlier this year. But the stock crashed 46 in late-June after it downgraded its profit guidance for FY26. 

The ASX 200 bank stock revealed that its profit before tax in FY26 is now expected to be between $163 million and $169 million (approximately 30% growth on FY25). This is down from the previous guidance of $180 million to $190 million.

But the bank posted its FY26 results ahead of the market open this morning and it seemed to be much better than the market expected. Judo announced strong gains across the board. NPAT increased 29% to $111.1 million and profit before tax increased 34% to $168.1 million, the top end of Judo’s revised guidance range.

Investors are now rushing back into the stock. At the time of writing, the shares are up an impressive 12% for the day so far, and changing hands at $1.02. It means Judo shares have now recovered around 16% of the losses shed in June, but they’re still 43% lower for the year-to-date and 42% lower than this time last year.

It’s clear that the selloff was way overdone and that the bank is growing stronger than many anticipated. Analysts are very bullish that the stock can keep rebounding higher in coming months.

Market Index data shows the majority of brokers have a strong buy rating on the shares. The $1.49 average target price implies a potential upside of around 51%, at the time of writing. 

The post Brokers tip these 3 ASX shares to climb another 50% to 66% appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares surged 18% to $158.24 in early afternoon trade on Tuesday That’s a welcome change for shareholders after the ASX healthcare stock lost 42% over the past 12 months.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 2% over the same period.

Investors appear encouraged by CSL’s latest full-year results and, in particular, management’s outlook following what the company describes as a ‘reset year’.

CSL’s reset year

For the year ended 30 June 2026, CSL reported total revenue of US$15.8 billion, down 1% year-over-year. Underlying NPATA fell 2% to US$3.1 billion.

The headline statutory result was considerably weaker, with CSL reporting a net loss after tax of US$2.6 billion. However, this reflected significant one-off costs and impairments.

CSL spent FY26 undertaking a broad transformation program, including about US$176 million in cost savings, the integration of its Behring and Vifor operations and US$799 million in restructuring costs.

The company also booked US$7.1 billion of pre-tax asset impairments, largely reflecting changes to commercial outlooks, generic competition, regulatory developments and site-utilisation assumptions.

What comes next for CSL shares?

Importantly, management expects FY27 to mark a return towards growth. Revenue is forecast to remain broadly steady, while underlying NPAT is expected to increase by approximately 5%.

CSL Behring is expected to deliver mid-single-digit revenue growth, supported particularly by immunoglobulin demand. CSL Seqirus is targeting low-single-digit growth, although softer US immunisation rates remain a headwind.

Vifor, meanwhile, is expected to decline amid generic competition and regulatory changes.

CSL is also continuing to invest for the longer term. The company announced a new US$1.1 billion share buyback and remains focused on developing new therapies and expanding its US plasma manufacturing network.

It has also entered a strategic partnership with VarmX for a novel blood-coagulation treatment.

What did management say?

Interim CEO and Managing Director Gordon Naylor said:

FY26 has been a year of reset. We have taken decisive action and created a clear path to return to sustainable growth.

Plasma market fundamentals and demand remain robust and momentum is building behind our newer therapies, such as ANDEMBRY® and HEMGENIX.

We have made solid progress on our transformation program and continue to simplify the business. We have also invested in our commercial capabilities and development programs to drive top line growth in the future.

For CSL shareholders, the sharp share price rebound suggests the market is willing to look beyond FY26’s difficult numbers and focus instead on the company’s potential return to sustainable growth.

The post CSL shares surge 18% as ‘reset year’ points to a return to growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.