Market Wrap: KOSPI Climbs On Election Optimism, Tech Gains
South Korea's KOSPI index rallied this past week, buoyed by political clarity, strong foreign inflows and a resurgence in technology stocks.
The index rose over 2.6%, climbing from 2,698.97 on June 2 to around 2,780 by June 6, marking one of its strongest weekly performances this year.
Markets were closed on June 3 for the snap presidential election, which concluded with a decisive victory for Lee Jae-myung. Investors responded positively to expectations of market-friendly reforms and fiscal stimulus under the new administration.
Tech giants led the charge as Samsung Electronics Co Ltd and SK Hynix Inc posted solid gains amid optimism over global chip demand and easing US-China tensions.
Meanwhile, steel and energy counters underperformed on worries over new US tariff measures.
Foreign investors returned as net buyers, reversing months of outflows driven by geopolitical uncertainty. Analysts attributed the shift to improved policy visibility and attractive valuations, with the KOSPI's forward price-to-earnings still well below regional peers.
With key resistance levels near 2,800–2,820, technical strategists suggest the index could enter a consolidation phase. Eyes will be on upcoming US inflation data and Korea's fiscal announcements for further direction. Related
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