KOSPI Rallies Over 6% on Tariff Pause

The benchmark KOSPI fell 1.38% to close at 6,599 on Thursday, snapping its multi-session rally as rising geopolitical tensions in the Middle East and surging oil prices prompted profit-taking. Brent crude climbed toward $120 per barrel following the escalating US-Iran standoff, raising concerns over inflationary pressure and higher energy import costs for South Korea’s economy. Broader regional weakness and caution after the Federal Reserve held rates steady while warning of elevated uncertainty also pressured sentiment. Losses were led by Samsung Electronics (-1.55%), Hyundai Motor (-4.23%), LG Energy Solution (-3.17%), and Doosan Enerbility (-1.93%). Meanwhile, investor confidence was initially supported by Samsung Electronics’ record first-quarter earnings, driven by robust AI-related chip demand, alongside stronger-than-expected results from major US technology firms that reinforced optimism over the global AI boom. The KOSPI posted strong double-digit gains for the month of April.

The benchmark KOSPI rose 0.75% to close at 6,691 on Wednesday, resuming its record rally after opening lower, as investors positioned ahead of the US Federal Reserve policy decision and major earnings releases. Markets expected the Fed to hold rates steady, focusing on policy guidance amid elevated energy prices and an uncertain global growth outlook. The index maintained an upward bias despite cautious global sentiment, supported by continued demand following recent record highs. Sentiment was underpinned by positioning into Samsung Electronics’ earnings and steady performance in select large-cap technology names, helping anchor the broader market despite earlier softness in semiconductors. At the same time, the index was supported by sector rotation, with gains led by Samsung Electronics (1.58%), SK Square (2.22%), Hanwha Aerospace (1.72%), Doosan Enerbility (1.10%), and HD Hyundai Heavy Industries (3.45%), while SK Hynix (-0.62%), Celltrion (-1.45%), and Hanwha Ocean (-1.34%) fell.

The benchmark KOSPI edged down 0.3% to around 6,625 on Wednesday, pausing its multi-session record run, as renewed global AI-sector concerns and rising oil prices prompted profit taking in heavyweight technology stocks. Sentiment weakened after reports that OpenAI missed internal growth targets pressured semiconductor and AI-linked shares, while overnight Wall Street losses reinforced caution. Major index components traded lower, including Samsung Electronics (-0.8%) and SK Hynix (-0.2%), alongside Hyundai Motor (-0.9%), LG Energy Solution (-0.4%), and Kia Corporation (-0.5%). Higher crude prices also weighed as OPEC disruption and continued Middle East uncertainty pushed Brent above $111 per barrel, raising concerns over Korea’s import costs despite government stabilization efforts. Still, downside was partly cushioned by ongoing capital market reforms, expanding AI partnerships, and broader policy support for semiconductors, shipbuilding, and supply chain security.