KOSPI Poised for Another Rally as Momentum Carries Into Tuesday Session

South Korea’s benchmark index is signaling continued bullish sentiment as traders gear up for the week’s next trading session. The market has demonstrated remarkable resilience, with consecutive daily advances totaling more than 400 points—representing a robust 9.1 percent surge. Trading at fresh record levels above the 4,620-point threshold, the index appears positioned for additional upside momentum when trading resumes.

Global Market Backdrop Supports Asian Equities

The broader investment climate remains supportive of equity valuations across Asian markets. Oil price movements are emerging as a critical driver of market sentiment, with elevated crude costs spurring renewed optimism. European bourses finished slightly elevated on their latest session, while major U.S. indexes similarly closed with modest gains, suggesting a constructive tone for regional market openings.

Monday’s Session: Selective Gains Dominate

The KOSPI extended its winning streak, accumulating 38.47 points or 0.84 percent to settle at 4,624.79. The trading session established a range between 4,567.55 and 4,652.54, while turnover reached 382.4 million shares valued at 22.8 trillion won.

Market participation remained broadly supportive, with advancing issues outnumbering declining stocks 530 to 348. The chemicals sector particularly distinguished itself, with LG Chem surging 4.94 percent and Lotte Chemical rallying 2.84 percent following strength in plastics-related equities.

Mixed Performance Across Major Sectors

Technology and automotive holdings displayed divergent momentum. Samsung Electronics pulled back slightly by 0.14 percent while SK Hynix managed a modest 0.67 percent climb. In the automotive space, Kia Motors declined 2.93 percent against Hyundai Motor’s 0.27 percent appreciation.

Energy-related holdings showed pronounced strength. SK Innovation accelerated 2.81 percent, KEPCO vaulted 3.24 percent, and Samsung SDI surged 3.93 percent. Financial sector performance remained uneven, with Hana Financial advancing 1.18 percent while KB Financial retreated 0.87 percent. Shinhan Financial edged higher by 0.51 percent, whereas Hyundai Mobis tumbled 1.38 percent. Heavy industry represented another area of strength, as POSCO Holdings jumped 1.81 percent. Tech darling Naver posted a 0.59 percent gain, LG Electronics slumped 1.23 percent, and SK Telecom remained unchanged.

Wall Street Sets Modest Tone

The tone from U.S. markets provided a constructive foundation for Asian trading. Despite an initially negative open, the major American indexes recovered ground as the session progressed, ultimately closing in positive territory. The Dow added 86.13 points or 0.17 percent to conclude at 49,590.20, while the NASDAQ climbed 62.56 points or 0.26 percent to finish at 23,733.90. The S&P 500 rose 10.99 points or 0.16 percent, settling at 6,977.27.

Initial selling pressure reflected concerns regarding Federal Reserve autonomy following subpoenas served by the Department of Justice, which carry implications of potential criminal charges. Federal Reserve Chair Jerome Powell characterized this legal development as “unprecedented,” linking it to ongoing political pressure from the Trump administration aimed at encouraging rate reductions.

However, selling momentum diminished as traders regained confidence in the interest rate outlook. Market participants remain sanguine about the possibility of near-term rate cuts, with most forecasters anticipating at least a quarter-point reduction over the coming months, notwithstanding expectations for unchanged rates at the Fed’s meeting later this month.

Crude Oil Strength Supports Energy Sentiment

Energy markets received support from geopolitical considerations, as the prospect of U.S. involvement in resolving Middle Eastern tensions sparked concerns about potential supply disruptions. West Texas Intermediate crude for February delivery climbed $0.33 or 0.51 percent to trade at $59.42 per barrel, underpinning the strength observed in regional energy stocks.

Disclaimer: The perspectives presented represent the author’s analysis and do not necessarily align with official positions of financial institutions or news organizations.