KOSPI recovers 5,500 on ceasefire hopes…markets watch Trump speech closely

The KOSPI opened higher on the 2nd, reclaiming the 5,500 level. Gains have extended for a second straight session, supported by expectations of an end to the war in the Middle East and a sharp rally in U.S. semiconductor stocks. However, the upside is being capped as investors remain cautious ahead of a nationally televised address on the war by U.S. President Donald Trump at 10 a.m.

As of 9:11 a.m., the KOSPI was up 58.17 points (1.06%) from the previous session at 5,536.87. After opening up 1.33%, the index at one point widened gains to as much as 1.75%. It later pared the advance to as low as 0.42% amid jitters ahead of Trump’s war-related remarks, showing volatility, though optimism still appears to dominate.

Kim Dae-jun, a researcher at Korea Investment & Securities, said, “A press conference by President Trump is scheduled for 10 a.m.,” adding, “If comments emerge that reverse the direction of three variables—currency swaps, passage through the Strait of Hormuz, and interest-rate cuts—the market could show strong resilience in its recovery.”

In the main board market, individuals were net buyers of 121.2 billion won, while foreign investors and institutions were net sellers of 48.4 billion won and 57.1 billion won, respectively.

Overnight, U.S. stocks also extended gains for a second session on expectations of an early end to the U.S.-Iran war. The Dow rose 0.48%, while the S&P 500 and Nasdaq gained 0.72% and 1.16%, respectively. Memory chipmakers, including SanDisk (9.0%) and Micron (8.9%), surged, leading the advance.

Most KOSPI heavyweights traded in the green. Samsung Electronics, SK hynix, Hyundai Motor, LG Energy Solution, Samsung Biologics, Hanwha Aerospace, SK Square, Doosan Enerbility, Kia, KB Financial Group, and HD Hyundai Heavy Industries were among the gainers.

The Kosdaq was up 5.64 points (0.51%) at 1,121.82 at the same time. On the Kosdaq as well, individuals were net buyers of 212.8 billion won, while foreign investors and institutions were net sellers of 117.8 billion won and 70.4 billion won, respectively.

Among the top Kosdaq names by market cap, EcoPro, EcoPro BM, Alteogen, Samchundang Pharm, Rainbow Robotics, Kolon TissueGene, and Wonik IPS were rising, while ABL Bio, Rino Industrial, LigaChem Bio, and Peptron were falling.

In Seoul’s FX market, the won-dollar exchange rate opened at 1,512.2 won per dollar, up 10.9 won from the previous day’s onshore close.

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com