South Korea's KOSPI is mounting a second attempt to reclaim the 7,000 level after absorbing a cluster of major events, including Nvidia's earnings, the U.S. personal consumption expenditures price index for July and the Bank of Korea's rate hike. Analysts say enough shares have changed hands since profit-taking pushed the market to a floor earlier this month, and share buybacks at Samsung Electronics and SK hynix are supporting the market's leading stocks, fueling expectations of a decisive break above 7,000 in the two trading sessions left this month.
The KOSPI opened at 6,996.12, just below the 7,000 mark, before heavy retail selling and the impact of the rate hike trimmed its gains in the afternoon, according to the Korea Exchange. The index closed at 6,912.37, up 104.16 points, or 1.53%, from the previous session. While it gave back much of its opening advance, analysts said the close above the 120-day moving average of 6,885 points — a technical support level — demonstrated resilience on the downside.
Earlier this month, the index climbed as high as 7,010.86 intraday on the 14th and 7,216.62 on the 18th, entering the 7,000 range before sliding to the 6,400 level in a short-term correction. It has since traded between 6,700 and 6,900 as it tries to hold above 7,000. That has kept expectations alive for a second attempt during the remaining sessions on the 28th and 31st.
The largely uneventful passage of the "super week" of market-moving events has provided a platform for the rebound. Nvidia beat expectations and guided for 70% revenue growth in fiscal 2028, underscoring the durability of AI demand. The company's acknowledgment of a prolonged memory supply shortage also renewed visibility on long-term growth for Samsung Electronics (005930.KS) and SK hynix (000660.KS), the leading Korean chipmakers. The U.S. core PCE price index rose 3.3% in July from a year earlier, matching market forecasts. The Bank of Korea raised rates, but that outcome was also widely anticipated.
The only major event left this week is a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium, scheduled for 11 p.m. Korean time on the 28th. Market participants expect Warsh to focus on his assessment of the macro picture rather than commit to a specific policy path. Barring a further increase in external uncertainty, expectations are that the push to settle above 7,000 will gather pace, led by the market's strongest sectors.
"The KOSPI broke through the 120-day line, which had been a technical resistance level, and then confirmed support," said Kang Jin-hyuk, an analyst at Shinhan Securities. "Now that major variables such as U.S. inflation data and the rate decision are behind us, continuity in fund flows centered on large caps will be key to further gains."
