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Kospi Stays Near Record After Early Surge Fades on Tepid TrumpXi Outcome

A foreign-fueled, chip-heavy advance leaves the market vulnerable to policy and trade reversals.

Overview

  • Seoul’s benchmark closed nearly flat at 4,086.89 on Thursday after giving back early gains when the TrumpXi meeting ended without a joint statement and offered limited clarity on trade-sensitive tech.
  • The index had set a record close of 4,081.15 on Wednesday as institutional buying lifted chipmakers, with reports of potential Nvidia supply ties to Samsung and SK Group boosting sentiment.
  • The Federal Reserve cut rates by 25 basis points but Chair Jerome Powell stressed another reduction in December was not assured, tempering risk appetite across Asia.
  • Seoul and Washington finalized tariff details, with local reports citing eased U.S. levies on Korean autos and parts that helped drive strong moves in Hyundai Motor and Kia.
  • The rally remains narrow and liquidity-driven: foreign ownership has climbed to roughly 34% with notable Irish inflows, while investor deposits and margin credit have surged and gains are concentrated in Samsung Electronics and SK hynix.