KOSPI Surges to Record High, Approaches 4000 Milestone

South Korea's benchmark KOSPI index achieved an extraordinary rebound, exceeding its previous all-time high and edging closer to the psychologically significant 4000 level. On October 24, the index soared by over 2%, fueled by strong buying from foreign and institutional investors.

According to the Korea Exchange, the KOSPI concluded the session at 3941.59, marking a 96.03-point surge (2.50%) from the prior session's close at 3845.56. Opening at 3893.23, a gain of 47.67 points (1.24%), the index rallied decisively throughout the day, breaking the 3900 barrier during intraday trading.

Rally Resumes After Brief Pause: KOSPI Approaches Historic 4000 Level

Following a sustained six-day winning streak of fresh record highs since October 18, the KOSPI faced a temporary pullback in the previous session. This decline was largely attributed to concerns about escalating U.S.-China geopolitical tensions, profit-taking activities during the earnings season, and muted investor sentiment tied to an unchanged policy rate announcement.

Just one day later, however, the rally regained momentum. Institutional and foreign investors resumed buying in earnest, driving market optimism and igniting a renewed surge in the index. With earnings season offering favorable surprises, the KOSPI now stands on the brink of crossing the critical 4000 level—a milestone that could further boost market sentiment.

In the main board market, retail investors took a contrarian position as net sellers, unloading 2.05 trillion won in shares. Conversely, foreign investors purchased 545.7 billion won worth of stocks, while institutions were particularly aggressive, buying shares worth 1.49 trillion won. This synchronized buying activity proved instrumental in propelling the index to new heights.

"The rally stems from easing U.S.-China tensions and better-than-expected earnings from major players like Intel, which have raised market expectations for semiconductor firms," explained Jae-won Lee, a researcher at Shinhan Investment Corp. Lee also underscored the potential impact of several upcoming diplomatic events, including the South Korea-U.S. summit on October 29, the U.S.-China meeting on October 30, and the South Korea-China dialogue on November 1. These events, alongside the continued focus on third-quarter corporate earnings, are set to shape investor sentiment significantly.

Landmark Gains for SK Hynix and LG Energy Solution; KOSDAQ Follows Uptrend

The rally was led by large-cap stocks, with semiconductor heavyweight SK Hynix surging 6.58% to a record 510,000 won, and LG Energy Solution rising 1.38% to another high of 492,000 won. Among other big names, Hanwha Aerospace was a notable underperformer, closing down 3.43%.

The KOSDAQ index mirrored the upswing, climbing to 883.08, an increase of 11.05 points (1.27%) from the prior session's close at 872.03. After an initial rise of 0.98% to 880.61 at the open, the KOSDAQ sustained its positive momentum for the remainder of the session.

Retail and foreign investors, however, were net sellers on the KOSDAQ, offloading 122.5 billion won and 27.5 billion won worth of shares, respectively. Institutional investors stepped in with strong net purchases totaling 165.3 billion won, enabling the index to maintain its upward trajectory.

Performance among KOSDAQ's top market-cap companies presented a mixed picture. Companies like EcoPro BM and EcoPro saw stellar advances of 8.28% and 8.34%, respectively. In contrast, Alteogen and PharmaResearch suffered declines of 1.55% and 2.84%.

Korean Won Strengthens Marginally Against U.S. Dollar

On the currency front, the Korean won made modest gains against the U.S. dollar. The won-dollar exchange rate closed the week at 1437.1 won per dollar, improving by 2.5 won from the prior trading session's rate of 1439.6 won.

With the KOSPI edging ever closer to the 4000 threshold, market participants remain closely attuned to upcoming geopolitical meetings and third-quarter earnings releases. These factors are likely to heighten volatility in the near term, dictating the immediate path of the market.