The South Korean KOSPI Composite Index delivered one of its strongest weekly advances of the quarter, climbing 4.58% and finishing at 4,100.05 as of December 5. The move pushed the benchmark above key psychological levels, reflecting renewed investor confidence amid stabilizing regional data and robust performance in global technology markets. As the global macro backdrop improved, the KOSPI’s rally aligned with broader gains across Asian and U.S. indices.

Semiconductor Momentum Drives Weekly Upside

Much of the KOSPI’s strength stemmed from sustained appetite for semiconductor and technology shares, supported by bullish sentiment in global chip leaders. Korea’s heavily tech-weighted index benefited from improving expectations surrounding memory chip demand, artificial-intelligence-related hardware, and export-driven inventory recovery. This optimism was evident early in the week, with the index rallying from its previous close of 4,028.51 and building upward traction as institutional and foreign investors added exposure to cyclical growth sectors.

Foreign Inflows Strengthen as Global Risk Appetite Improves

The KOSPI’s upward trend was reinforced by renewed foreign inflows, a key driver of Korean equity market performance. Softer U.S. yields, stronger technology earnings signals, and receding volatility—as indicated by declines in the VIX—contributed to favorable conditions for risk assets. Regional sentiment improved as Chinese markets stabilized and global investors shifted toward growth-oriented positions. With the index trading within a weekly range of 4,003.29–4,100.05, each intraday dip found support, signaling broad participation in the rally.

Macro Signals and BOK Policy Expectations Shape Market Tone

On the macroeconomic front, expectations surrounding the Bank of Korea’s policy path provided an additional layer of support. While policymakers remain cautious due to inflation concerns, markets are increasingly pricing in a more neutral—or potentially softer—stance in early 2025. Meanwhile, export data trends suggested gradual improvement, aided by stronger global technology cycles and easing supply chain frictions. Together, these factors contributed to a constructive environment for Korean equities, even as short-term volume fluctuations offered a mixed technical picture.

The coming weeks will test whether the KOSPI can maintain momentum above the 4,100 threshold. Investors will monitor upcoming trade data, U.S. macro indicators, and monetary policy updates for signals that could influence foreign capital flows. While the index’s strong weekly close suggests resilience, external risks—such as global tech sector volatility, currency fluctuations, and geopolitical tensions—remain relevant. A sustained breakout would strengthen the case for continued upside into early 2025, but consolidation remains a possibility should market conditions tighten.