KOSPI Index Eyes Fresh Peak as South Korean Market Rallies Through Six-Day Winning Streak

The South Korean equity market has delivered impressive returns across six consecutive trading sessions, with the KOSPI index climbing over 360 points to reach fresh record territory. Trading near the 4,585-point threshold, momentum is expected to carry forward, setting the stage for another positive open early this week.

Global Tailwinds Driving Asian Equities Higher

The rally in the KOSPI index reflects broader optimism sweeping through international markets. With U.S. and European bourses posting solid gains, Asian markets are anticipated to follow suit. The primary catalyst: revised expectations around interest rate policy. Employment data released by the U.S. Labor Department fell short of forecasts for December, fueling market confidence that rate cuts could materialize later this year, even as the Federal Reserve is widely seen holding rates steady at its upcoming meeting.

KOSPI Index Gains Tempered by Sector Divergence

Friday’s session delivered another upside finish for the KOSPI index, climbing 33.95 points or 0.75 percent to close at 4,586.32. The index traded between 4,500.48 and 4,590.03 throughout the day, with volume totaling 388.37 million shares valued at 23.04 trillion won. While gainers (537) outnumbered decliners (340), sector performance diverged sharply.

Financial and automotive stocks served as primary drivers of strength in the KOSPI index. Among the financials, KB Financial surged 2.51 percent, Hana Financial advanced 1.09 percent, and Shinhan Financial posted modest gains of 0.39 percent. Automakers delivered exceptional performance, with Hyundai Motor jumping 7.49 percent and Kia Motors climbing 6.65 percent, while Hyundai Mobis accelerated 2.17 percent.

Technology and chemical sectors weighed on the KOSPI index, offsetting some of the gains in other areas. LG Electronics tumbled 3.36 percent, Samsung SDI retreated 1.29 percent, and SK Hynix slipped 1.59 percent. Among chemical names, Lotte Chemical plunged 3.18 percent, SK Innovation stumbled 2.83 percent, and LG Chem declined 0.79 percent. Samsung Electronics managed a minimal 0.14 percent rise despite sector headwinds.

Wall Street Strength Supports Asian Sentiment

The positive momentum reflected confidence from U.S. markets, where all three major indices finished near session highs. The Dow Jones surged 237.96 points or 0.48 percent to a record 49,504.07, while the S&P 500 added 44.82 points or 0.65 percent to close at a fresh high of 6,966.28. The Nasdaq rallied 191.33 points or 0.81 percent to finish at 23,671.35. For the broader week, the Dow gained 2.3 percent, Nasdaq climbed 1.9 percent, and the S&P 500 advanced 1.6 percent.

Energy Prices Rally Amid Geopolitical Headwinds

Crude oil prices strengthened as well, with West Texas Intermediate crude for February delivery gaining $1.58 or 2.74 percent to $59.34 per barrel. Supply concerns stemming from geopolitical tensions, combined with a drop in U.S. inventories and OPEC’s pause on production increases, underpinned the advance in energy markets.