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KOSPI Edges Higher to 5,300 as AI‑Related U.S. Weakness Fades, While Large‑Caps Diverge

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  • The benchmark Korea Composite Stock Price Index (KOSPI) is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 4, 2026. (Yonhap)
    Image: Yonhap
    The benchmark Korea Composite Stock Price Index (KOSPI) is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 4, 2026. (Yonhap) Source Full size
  • The Korea Composite Stock Price Index is shown on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 3, 2026. (Yonhap)
    Image: Yonhap
    The Korea Composite Stock Price Index is shown on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 3, 2026. (Yonhap) Source Full size
  • The opening benchmark Korea Composite Stock Price Index (KOSPI) is displayed on a screen inside the dealing room in Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    The opening benchmark Korea Composite Stock Price Index (KOSPI) is displayed on a screen inside the dealing room in Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • Traders work inside the dealing room of Hana Bank in central Seoul on Jan. 28, 2026. (Yonhap)
    Image: Yonhap
    Traders work inside the dealing room of Hana Bank in central Seoul on Jan. 28, 2026. (Yonhap) Source Full size
  • This photo taken Jan. 30, 2026, shows the dealing room of Woori Bank in Seoul. (Yonhap)
    Image: Yonhap
    This photo taken Jan. 30, 2026, shows the dealing room of Woori Bank in Seoul. (Yonhap) Source Full size
  • An employee is seen smiling in front of a screen inside the dealing room in Hana Bank of central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    An employee is seen smiling in front of a screen inside the dealing room in Hana Bank of central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • Financial data is seen displayed on a screen inside the dealing room of Hana Bank in central Seoul, on Jan. 29, 2026. (Yonhap)
    Image: Yonhap
    Financial data is seen displayed on a screen inside the dealing room of Hana Bank in central Seoul, on Jan. 29, 2026. (Yonhap) Source Full size
  • The Korea Composite Stock Price Index is shown on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 3, 2026. (Yonhap)
    Image: Yonhap
    The Korea Composite Stock Price Index is shown on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 3, 2026. (Yonhap) Source Full size
  • An employee is seen smiling in front of a screen inside the dealing room in Hana Bank of central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    An employee is seen smiling in front of a screen inside the dealing room in Hana Bank of central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    The closing benchmark Korea Composite Stock Price Index is seen on a screen inside the dealing room of Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • Gold for sale is displayed at a store in central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    Gold for sale is displayed at a store in central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • The opening benchmark Korea Composite Stock Price Index (KOSPI) is displayed on a screen inside the dealing room in Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap)
    Image: Yonhap
    The opening benchmark Korea Composite Stock Price Index (KOSPI) is displayed on a screen inside the dealing room in Hana Bank in central Seoul on Feb. 2, 2026. (Yonhap) Source Full size
  • This photo taken Jan. 30, 2026, shows the dealing room of Woori Bank in Seoul. (Yonhap)
    Image: Yonhap
    This photo taken Jan. 30, 2026, shows the dealing room of Woori Bank in Seoul. (Yonhap) Source Full size
  • Financial data is seen displayed on a screen inside the dealing room of Hana Bank in central Seoul, on Jan. 29, 2026. (Yonhap)
    Image: Yonhap
    Financial data is seen displayed on a screen inside the dealing room of Hana Bank in central Seoul, on Jan. 29, 2026. (Yonhap) Source Full size
  • Traders work inside the dealing room of Hana Bank in central Seoul on Jan. 28, 2026. (Yonhap)
    Image: Yonhap
    Traders work inside the dealing room of Hana Bank in central Seoul on Jan. 28, 2026. (Yonhap) Source Full size

KOSPI nudges up after week of swings The benchmark index rose 0.23% to 5,300.37 points in early trade on 4 Feb 2026, adding 12.29 points after a 6.84% surge to 5,288.08 on 3 Feb and a 5.26% plunge to 4,949.67 on 2 Feb [1][2][5]. The rally followed a five‑minute buy‑side circuit breaker triggered by the previous day’s rapid gains, marking the market’s first modest advance after a volatile stretch [3]. Analysts note that the bounce reflects renewed investor appetite despite lingering macro‑risk concerns [1].

U.S. AI software worries pressure Asian markets Overnight, the S&P 500 fell 0.84% and the Nasdaq slipped 1.43% as investors reacted to fears that AI‑driven software spending could strain profitability [1]. Anthropic’s launch of upgraded Claude capabilities for legal, sales and network tasks intensified speculation that AI could reshape the software sector, adding to the cautious tone [1]. The U.S. market dip contributed to the Korean market’s mixed sentiment, underscoring the interconnectedness of tech‑heavy indices [1][7].

Large‑cap stocks split between losers and gainers Semiconductor giants Samsung Electronics and SK hynix declined 1.73% and 1.21% respectively, echoing the broader tech pullback [1]. In contrast, Hyundai Motor surged 3.97%, LG Energy Solution rose 2.69%, and biotech firm Celltrion jumped 4.1%, highlighting divergent sector reactions to the AI‑related backdrop [1]. Financial stocks remained relatively resilient, with Hana Financial Group up 3.2% on 2 Feb, while most other blue‑chips posted modest losses [6].

Won weakens slightly amid currency pressure The Korean won traded at 1,453 per U.S. dollar in early trade, slipping 7.6 won from the previous close and extending a depreciation trend that began after the Fed chair nomination sparked risk‑off flows [1][6][7]. The currency slide coincided with a modest rise in three‑year Treasury yields to 3.152% and five‑year yields to 3.448% on 2 Feb, reflecting global bond‑market dynamics [6]. Despite the won’s weakness, the KOSPI’s modest gain suggests that investors are balancing currency concerns against sector‑specific opportunities.

Fed chair nomination and tariff talks shape sentiment The nomination of former Fed governor Kevin Warsh on 2 Feb triggered a 5% market sell‑off, prompting sell‑side circuit breakers and large outflows from foreign and institutional investors [5][6][7]. Subsequent diplomatic progress, including Prime Minister Kim Min‑seok’s tariff‑talks with the United States, helped temper fears and contributed to the 4 Feb rebound [5]. Market participants continue to monitor the Fed leadership outcome and U.S. tariff policy as key drivers of Korean equity performance [5][8].

Sources

Timeline

Nov 29, 2025 – Foreign investors sell a record 14.4 trillion won on the KOSPI, the highest monthly outflow since March 2020, while Korean retail investors buy 9.2 trillion won, marking the third‑largest monthly net purchase on record[30].

Dec 8, 2025 – The KOSPI rises 1.34 % to 4,154.85 ahead of a two‑day U.S. Federal Open Market Committee meeting, where traders price in a 0.25‑point rate cut, while investors await earnings from Oracle and Broadcom[29].

Dec 14, 2025 – The KOSPI opens 2.09 % lower at 4,080.01 as renewed AI‑bubble worries hit Korean large caps and President Trump signals former Fed governor Kevin Warsh as his top Fed‑chair candidate[28].

Dec 15, 2025 – The KOSPI falls 1.84 % to 4,090.59 amid fresh AI‑profitability concerns tied to U.S. tech earnings, with Samsung Electronics down 3.76 % and SK Square sliding 5.03 %[27].

Dec 16, 2025 – The KOSPI drops 2.24 % to 3,999.13 as investors await U.S. November payroll data, while defensive stocks such as KT&G gain 4.9 % and the won weakens to ≈ 1,477 per USD[26].

Dec 18, 2025 – The KOSPI slips 1.53 % to 3,994.5 following Oracle data‑center concerns that fuel AI‑profitability doubts, yet Micron’s earnings surprise helps limit the decline, says analyst Lee Kyoung‑min[25].

Jan 2, 2026 – The KOSPI opens higher, gaining 0.59 % to 4,238.83 in the first 15 minutes as retail investors buy net, offsetting foreign selling, while Samsung Electronics rises 2.59 % and SK hynix up 0.92 %[24].

Jan 2, 2026 – The KOSPI climbs 1.1 % to 4,260.55 by late morning, driven by semiconductor gains as Samsung jumps 3.67 % and SK hynix +2.3 %, while Celltrion surges 12.43 %[23].

Jan 4, 2026 – Foreign ownership of Korean equities reaches a five‑year high of 32.9 % of market cap, boosted by net 3.5 trillion won purchases in December, especially in Samsung and SK hynix, as chip demand and market‑reform policies attract overseas funds[22].

Jan 5, 2026 – The KOSPI closes at a record 4,457.52 after a tech‑led rally, with Samsung Electronics jumping 7.47 % to a six‑year high, while the won weakens to 1,443.8 per USD and U.S. markets show mixed moves[21].

Jan 6, 2026 – The KOSPI breaks the 4,500 point barrier for the first time, closing at 4,525.48 after technology, brokerage and shipbuilding stocks lead the surge, while foreign investors flip to net sellers following two days of buying[20].

Jan 7, 2026 – The KOSPI opens sharply, jumping 1.53 % to 4,594.85 and briefly topping 4,600 as semiconductor and auto names rally; Hyundai Motor spikes 13.8 % after Boston Dynamics showcases its Atlas robot at CES[17].

Jan 7, 2026 – The KOSPI closes at a record 4,551.06 after an intraday high of 4,611.72, with Hyundai Motor up 13.8 % and Samsung Electronics gaining 1.51 %, while foreign investors net buy 1.25 trillion won despite a slightly weaker won[16].

Jan 16, 2026 – The KOSPI ends at a record 4,840.74 as semiconductor stocks drive the rally, Samsung up 3.47 % and SK hynix +0.93 %, pushing total market cap past 4,000 trillion won[15].

Jan 19, 2026 – The KOSPI tops 4,900 intraday and closes at a record 4,904.66 after a 12‑day winning streak, with auto and tech shares leading, while President Trump threatens new tariffs on eight European countries over his Greenland plans[14][13].

Jan 22, 2026 – The KOSPI briefly breaches 5,000 early in trade, reflecting strong momentum as South Korea enacts the AI Basic Act, the world’s first comprehensive AI law, and the ruling Democratic Party proposes a merger with the Rebuilding Korea Party ahead of local elections[12].

Jan 29, 2026 – The KOSPI reaches 5,221.25, a fresh peak, on earnings strength from major firms; the KOSDAQ climbs over 20 % since Dec 30 as the government pledges startup support and public‑fund investment[9].

Jan 31, 2026 – President Trump names former Fed governor Kevin Warsh as his “pro‑Trump” Fed‑chair pick, signaling a shift in U.S. monetary policy leadership, while Seoul offers to discuss foreign investment ahead of a pending bill and the former South Korean first lady files an appeal against a 20‑month prison sentence[8].

Feb 2, 2026 – The KOSPI plunges 5.26 % to 4,949.67 as the nomination of a new Federal Reserve chair and a sharp drop in gold and silver trigger risk‑aversion; the Korean won weakens to 1,464.3 per USD and bond yields rise, while Prime Minister Kim Min‑seok reports progress on U.S. tariff talks following a direct line with Vice President JD Vance[5][6].

Feb 2, 2026 – In early trade, the KOSPI slides 1.05 % to 5,169.36 as U.S. markets dip after the Fed‑chair nomination, Microsoft shares tumble on a cloud‑revenue miss, and the won weakens to 1,449.5 per USD[7].

Feb 3, 2026 – The KOSPI jumps 4.68 % to 5,181.41 on bargain‑hunting buying, prompting a five‑minute buy‑side circuit breaker, while large‑cap leaders Samsung and SK hynix rise 6.58 % and 7.83 % respectively and the won strengthens to 1,448.8 per USD[3].

Feb 3, 2026 – The KOSPI surges 6.84 % to 5,288.08 —the biggest daily gain in six years—after heavy trading triggers a short‑term “sidecar” buying halt; JP Morgan lifts its KOSPI target to 6,000‑7,500, citing defense and shipbuilding strength[2].

Feb 4, 2026 – The KOSPI climbs 0.23 % in early trade to 5,300.37 as U.S. markets fall on AI‑software worries, while Hyundai Motor, LG Energy Solution and Celltrion post gains and the won weakens slightly to 1,453 per USD[1].

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