Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home Stock

Here’s why South Korea’s KOSPI Composite Index is soaring

admin by admin
June 3, 2025
in Stock
0
Here’s why South Korea’s KOSPI Composite Index is soaring
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

The KOSPI Composite Index has embarked on a strong rally in the past few months as South Korean shares surged. The index, which tracks the biggest South Korean companies, rose to KRW 2,720, its highest point since August 26, and 18% above the lowest point this year. 

Interest rate cuts have driven South Korean stocks

South Korean stocks have jumped this year even as some of the biggest companies are exposed to the United States, where Donald Trump has applied substantial tariffs. Some of the most exposed companies are giants like Hyundai, Samsung, and LG.

One reason for the rally is that investors believe that the two countries will reach an agreement later this year. South Korea was one of the first countries to reach out to the Trump administration for a deal.

South Korean stocks have also soared as the political environment has cooled a bit in the past few months. Political temperatures rose a few months ago after the then-president declared a state of emergency. 

Further, the South Korean central bank has been more dovish in the past few months. It slashed interest rates last week by 0.25% to 2.75%, down from last year’s high of 3.50%. It has been slashed five times since last year. 

Interest rate cuts boost the stock market by lowering the country’s bond yields. Data shows that the ten-year yield has been in a downward trend in the past few months. It was trading at 2.80%, down from the year-to-date high of 3.08%. The 30-year yield has also dropped to 2.67% from the year-to-date high of 2.85%.

It has slashed interest rates because analysts anticipate that the South Korean economy will continue slowing. The risk, however, is that inflation has remained stubbornly high in the past few months. Recent data shows that the headline CPI remained at 2.1% in April, up from 1.3% earlier this year.

Read more: Trump’s tariff hikes cause steel stocks to fall across Asia

Most KOSPI companies hitting 52-week highs

The KOSPI Index remains significantly below the highest point in 2024 even as more companies are hitting their 52-week highs. Data shows that more companies in the index are hitting the highs today more than at any point in the past few years. 

Over 90 firms have moved to this high, and many more could join the group in the coming weeks. This rally underscores that investors believe that smaller companies will do better in the future. Samsung, the biggest South Korean company, now accounts for 16% of the index, down from 20% earlier this year.

The best-performing companies in the KOSPI Index are the likes of Hyundai Rotem, MNC Solution, Hanwha, HD Hyundai Energy Solutions, and Hyundai Engineering, have all surged by over 100% this year.

KOSPI Composite Index analysis

KOSPI chart by TradingView

The daily chart shows that the KOSPI Composite Index bottomed at KRW 2,285 in April and then rebounded to KRW 2,720 in May. It has already crossed the important resistance point at KRW 2,680, its highest point on February 1. 

Moving above that level meant that investors had prevailed. The index has also formed a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other. 

It has jumped above the 61.8% Fibonacci Retracement level, a sign that bulls are in control. Therefore, the index will likely continue rising as bulls target the key resistance level at $2,800, up by 3.8% above the current level. A move below the 50% retracement level will invalidate the bullish outlook.

The post Here’s why South Korea’s KOSPI Composite Index is soaring appeared first on Invezz


Previous Post

Asian markets close: Hong Kong leads gains, Nikkei flat; Sensex falls over 630 pts

Next Post

Vietnam firms to sign $2B deal for US agricultural products

Next Post
Vietnam firms to sign $2B deal for US agricultural products

Vietnam firms to sign $2B deal for US agricultural products

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
Top 4 catalysts for the Dow Jones and S&P 500 this week

Top 4 catalysts for the Dow Jones and S&P 500 this week

May 25, 2025
Here’s why the German DAX index is soaring today

Here’s why the German DAX index is soaring today

May 26, 2025
Denny’s set to close dozens more locations this year, though some openings planned too

Denny’s set to close dozens more locations this year, though some openings planned too

February 16, 2025
Retire with dividends: best covered call ETFs for income investors

Retire with dividends: best covered call ETFs for income investors

0
Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

0
As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
Retire with dividends: best covered call ETFs for income investors

Retire with dividends: best covered call ETFs for income investors

June 5, 2025
Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

June 5, 2025
Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

June 5, 2025
Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

June 5, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    Retire with dividends: best covered call ETFs for income investors

    Retire with dividends: best covered call ETFs for income investors

    June 5, 2025
    Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

    Applied Digital stock: CoreWeave deal adds visibility, but key risks remain

    June 5, 2025
    Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

    Kimberly-Clark sells majority stake in global tissue unit to Brazil’s Suzano

    June 5, 2025
    Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

    Black Iron says Shymanivske project key to Ukraine recovery; sees post-war steel demand boosting prices

    June 5, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved