KOSPI Edges Higher on Feb 4 as AI‑Related U.S. Market Weakness Dampens Momentum
Updated (33 articles)
Modest KOSPI gain follows U.S. AI software worries In early trade on Feb 4, the Korea Composite Stock Price Index rose 0.23% to 5,300.37, adding 12.29 points despite a 0.84% drop in the S&P 500 and a 1.43% fall in the Nasdaq as investors feared AI‑driven disruptions to software firms [1]. The uptick marks a pause after three consecutive days of volatile swings that saw the index swing from a 5.26% plunge on Feb 2 to a 6.84% surge on Feb 3 [2][4].
Large‑cap stocks split between losers and gainers Semiconductor giants Samsung Electronics (‑1.73%) and SK Hynix (‑1.21%) fell, while internet platforms Naver (‑1.30%) and Kakao (‑1.18%) also slipped, reflecting sector pressure from the AI narrative [1]. Conversely, Hyundai Motor jumped 3.97%, LG Energy Solution rose 2.69%, and biotech firm Celltrion surged 4.10%, highlighting divergent reactions among heavyweights [1].
Circuit‑breaker activity and investor flows underscore volatility A five‑minute buy‑side circuit breaker was triggered on Feb 3 after the KOSPI surged 4.68% to 5,181.41, following a sell‑side pause the previous day [3]. The next session saw a “sidecar” buying halt as the index leapt 6.84% to a six‑year high of 5,288.08, prompting the Korea Exchange to temporarily suspend buy orders [2]. Foreign investors net‑bought 703.3 billion won and institutions added 2.2 trillion won on Feb 3, while retail investors sold a net 2.9 trillion won, indicating contrasting sentiment across participant groups [2].
Won depreciation and bond‑yield moves track market swings The Korean won weakened to 1,453 per U.S. dollar on Feb 4, down 7.6 won from the prior close, after strengthening to 1,445.4 on Feb 3 and 1,448.8 on Feb 3 morning [1][2][3]. Treasury yields rose modestly, with three‑year Korean government yields up 3.7 basis points to 3.189% and five‑year yields climbing 4.7 basis points to 3.495% on Feb 3, reflecting broader global rate‑sensitivity [2].
Sources
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1.
Yonhap: South Korean Stocks Rise Slightly as AI Concerns Hit Wall Street: Details the Feb 4 modest KOSPI rise, AI‑related U.S. market weakness, mixed large‑cap performance, and a slightly weaker won .
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2.
Yonhap: Seoul stocks surge 6.8% to fresh high on bargain hunting: Reports the Feb 3 record‑breaking 6.84% KOSPI jump, sidecar buying halt, JP Morgan’s raised index target, and strong foreign/institutional buying .
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3.
Yonhap: South Korean Stocks Surge, KRX Triggers Temporary Halt: Covers the Feb 3 4.68% KOSPI surge, five‑minute buy‑side circuit breaker, large‑cap gains, and U.S. market cues influencing sentiment .
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4.
Yonhap: South Korean Stocks Plunge Over 5% Amid Fed Chair Nomination and Precious‑Metal Slump: Describes the Feb 2 5.26% KOSPI drop tied to the Fed chair nomination, gold/silver price crashes, and a weaker won .
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5.
Yonhap: South Korean Stocks Reach Record High as AI Buying Persists Amid U.S. Tariff Threat: Highlights the Jan 30 record KOSPI level, AI‑driven buying, and Trump’s tariff threat to South Korea .
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6.
Yonhap: South Korean Stock Index Hits New High Above 5,200 Amid Strong Earnings: Notes the Jan 29 KOSPI rise on earnings momentum, retail buying pressure, and a still‑weakening won .
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7.
Yonhap: South Korean Stocks Surge After Trump Signals Trade Deal Progress: Explains the Jan 28 KOSPI jump following Trump’s trade‑deal comments, chipmaker gains, and a slightly stronger won .
Timeline
Dec 8, 2025 – KOSPI gains 1.34% to 4,154.85 ahead of the two‑day Federal Open Market Committee meeting, with investors pricing in a 0.25‑point rate cut; foreign investors net buy 321.3 bn won while locals sell, LG Energy Solution jumps 5.99% on a Mercedes‑Benz supply deal, and Samsung and SK hynix rise on a positive tech outlook[30].
Dec 15, 2025 – KOSPI falls 1.84% to 4,090.59 as AI‑bubble worries intensify, Samsung drops 3.76% and SK hynix off 2.98%; the won strengthens to 1,471 per $, and three‑year yields slip to 3.00% after a broad market sell‑off[29].
Dec 16, 2025 – KOSPI closes below 4,000 at 3,999.13, driven by AI profitability concerns and investors awaiting U.S. payroll data; analyst Lee Kyoung‑min of Daishin Securities warns that “a downgrade in investment outlook for some big‑tech firms…has increased market volatility”[28].
Dec 17, 2025 – KOSPI opens 1.33% lower at 4,002.6 as renewed AI fears follow Oracle’s data‑center pull‑out, with Samsung slipping 0.65% and the won strengthening to 1,478.5 per $[27].
Dec 18, 2025 – KOSPI drops 1.53% to 3,994.5 amid Oracle data‑center concerns; Lee Kyoung‑min repeats that “Oracle’s data‑center projects have fanned concerns over AI profitability,” and the won trades at 1,478.3 per $[26].
Dec 26, 2025 – KOSPI opens 0.56% higher at 4,131.59 on Santa‑rally optimism, with Samsung up 2.88% and SK hynix gaining 1.02%; AI investor SK Square jumps 3.74% and the won weakens to 1,453.2 per $[25].
Jan 2, 2026 (open) – KOSPI opens 0.59% higher at 4,238.83 in the first 15 minutes, as retail investors net buy while foreign and institutional investors sell; Samsung climbs 2.59% and SK hynix 0.92%, offset by declines in LG Energy Solution and LG Chem[24].
Jan 2, 2026 (close) – KOSPI closes at an all‑time high of 4,309.63, up 2.27% on a chip‑driven rally with Samsung up 7.17% and SK hynix up 3.99%; foreign investors net buy 644.68 bn won, 2025 exports hit a record $709.7 bn, and analyst Kim Yong‑gu says the index “is expected to trade in a neutral‑to‑positive tone”[23].
Jan 5, 2026 – KOSPI hits a record 4,457.52, up 3.43% on a tech rally led by Samsung’s 7.47% surge to a six‑year high; foreign buyers offset institutional and retail selling, while the won weakens to 1,443.8 per $[22].
Jan 6, 2026 (early) – KOSPI tops 4,500 for the first time at 4,525.48, driven by semiconductor, brokerage and shipbuilding gains; retail investors buy 597.55 bn won while foreigners sell, and the won slips to 1,445.5 per $[21].
Jan 6, 2026 (update) – Trading volume reaches 492.84 million shares, losers outnumber winners but big‑cap tech lifts the index; foreign investors turn net sellers after two days of buying, and bond yields move mixed as the three‑year Treasury rises to 2.948%[20].
Jan 6, 2026 (report) – KOSPI closes at 4,525.48, confirming the 4,500 breakthrough, with semiconductors, brokerages and shipbuilders leading; domestic retail buying offsets foreign outflows, and the won weakens to 1,445.5 per $[19].
Jan 7, 2026 (open) – KOSPI opens sharply higher, jumping 69.37 points to 4,594.85 as investors pile into technology stocks, briefly breaching 4,600 and setting a fresh intraday high; Samsung rises 2.81% and SK hynix 3.99%[18].
Jan 7, 2026 (record close) – KOSPI closes at an all‑time high of 4,551.06 after briefly topping 4,611.72, with Samsung up 1.51% and Hyundai Motor soaring 13.8% following Hyundai‑owned Boston Dynamics’ Atlas robot demo at CES, while foreign investors net buy 1.25 trn won[16].
Jan 7, 2026 (record close – duplicate) – The same session sees shipbuilder HD Hyundai Heavy Industries climb on high‑end orders and the won weaken to 1,445.8 per $, underscoring a sector‑focused rally despite declines in Korean Air and LG Energy Solution[17].
Jan 8, 2026 (open) – Seoul shares open 0.12% higher at 4,556.33, with defense and shipbuilding stocks leading gains—Hanwha Aerospace surges 8.12%—while the won trades at 1,449.1 per $[15].
Jan 8, 2026 (record high) – KOSPI extends its rally to a five‑day streak, closing at 4,552.37 as shipbuilding and defense stocks drive the rise; Samsung falls 1.56% despite a record Q4 earnings projection, and the won weakens to 1,450.6 per $[14].
Jan 16, 2026 – KOSPI reaches a record 4,840.74, up 0.77% on an 11‑session rally powered by semiconductor gains—Samsung up 3.47% and SK hynix 0.93%—while market cap exceeds 4,000 trillion won and analysts credit Samsung’s earnings outlook as a key catalyst[13].
Jan 19, 2026 – KOSPI briefly tops 4,900 intraday at 1:57 p.m., marking the 12th consecutive gain of the year, with auto and tech stocks leading the rally and traders reversing an early decline to push the index higher[12].
Jan 27, 2026 (tariff announcement) – President Trump posts on social media that the U.S. will raise tariffs on South Korean autos, lumber, pharmaceuticals and “all other” goods to 25%, prompting KOSPI to slide 0.84% to 4,908.20 in early trade; Hyundai Motor drops 3.55% and the won weakens to 1,449.4 per $[9].
Jan 27, 2026 (close above 5,000) – KOSPI closes at 5,084.85, up 2.73% and above the 5,000 landmark, as Samsung hits a record 159,500 won and SK hynix reaches an all‑time high of 800,000 won, while the won slips to 1,446.2 per $ amid Trump’s tariff warning[8].
Jan 28, 2026 – Trump says his administration will “work something out” on a trade deal with Seoul, easing tariff fears and sparking a 1.65% KOSPI jump to 5,168.72 in opening minutes; Samsung and SK hynix each gain around 2%, Hyundai Motor adds 2.76%, and the won strengthens to 1,433.5 per $[7].
Jan 30, 2026 – KOSPI hits a new record high of 5,224.3, extending a four‑session winning streak as AI‑related stocks attract buying despite profitability worries; Hyundai Motor rises 3.97%, LG Energy Solution 2.69%, Celltrion 4.1%, while President Trump announces plans to raise “reciprocal” tariffs to 25% this week, tempering optimism[5].
Feb 2, 2026 – KOSPI plunges 5.26% to 4,949.67 after the Federal Reserve nominates a new chair, triggering a five‑minute sell‑side circuit breaker; gold and silver prices crash, margin‑call liquidations hit KRX gold, financial stocks like Hana Financial rise 3.2%, and the won weakens to 1,464.3 per $[4].
Feb 3, 2026 (early) – KOSPI rebounds 4.68% to 5,181.41, led by Samsung (+6.58%) and SK hynix (+7.83%); the Korea Exchange imposes a five‑minute buy‑side circuit breaker after the rapid rise, and investors watch the Fed chair nomination and trade‑tension fallout[3].
Feb 3, 2026 (later) – KOSPI surges 6.84% to 5,288.08, the biggest daily gain in six years, as heavy trading triggers a short‑term “sidecar” buying halt; JP Morgan lifts its KOSPI target to 6,000‑7,500, foreign investors net buy 703.3 bn won, and the won strengthens to 1,445.4 per $[2].
Feb 4, 2026 – KOSPI climbs 0.23% to 5,300.37 in early trade despite U.S. markets falling on AI‑software worries; Anthropic’s Claude upgrades spark speculation on AI’s impact, Hyundai Motor jumps 3.97%, LG Energy Solution 2.69%, and the won weakens to 1,453 per $[1].
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Yonhap: South Korean Stocks Rise Slightly as AI Concerns Hit Wall Street
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