The KOSPI (main market) recovered the ‘8,000 level’ on expectations of a U.S.·Iran end-of-war. In particular, foreign investors returned to net buying after 25 trading days, lifting the market sharply.

On the 12th, the KOSPI closed at 8,123.62, up 359.67 points (4.63%) from the previous session.

It had been only three sessions since the KOSPI index last topped 8,000 on the 9th. The KOSPI first closed above the 8,000 threshold on the 26th of last month, then climbed intraday to 8,933.62 on the 2nd, approaching the 9,000 mark, but was subsequently pushed back to the 7,500 area as profit-taking poured in.

At the opening bell, the KOSPI spiked by nearly 7%, and a buy-side sidecar (temporary suspension of program buy orders) was triggered. This week, except for the 11th, sell- and buy-side sidecars alternated every day, reflecting extreme volatility.

Foreign investors were the driving force behind the market’s sharp rise. Breaking a 24-session streak of net selling through the previous day, foreigners turned net buyers of 2.1181 trillion won. Institutions also net bought 2.4013 trillion won, while individuals net sold 4.3366 trillion won.

The decisive catalyst for the surge was overnight news from U.S. President Donald Trump that a U.S.·Iran end-of-war agreement was imminent.

On Wall Street, the Dow (1.86%), S&P500 (1.75%), and Nasdaq (2.54%) all jumped. The Philadelphia Semiconductor Index soared 7.91%, and major chip stocks such as Micron (11.66%) and Intel (9.27%) also rallied strongly, with that momentum carrying over intact to the domestic market. Chip bellwethers Samsung Electronics and SK hynix rose 7.86% and 2.33%, respectively.

Lee Jae-won, a researcher at Yuanta Securities, said, “The KOSPI knelt this week to gain momentum,” and added, “The dot plot to be released at the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve next week, and remarks by Chair Kevin Warsh, will be the key variables.”