The KOSPI is on one of those runs
South Korea’s stock market has been acting like it just found a second wind: four straight green sessions, more than 900 points added, and a fresh record closing high. The KOSPI is now hovering just under the 7,500 mark, which is the kind of level that makes traders squint at their screens and wonder, “Okay… what exactly is driving this train?”
Momentum: friend, then frenemy
When an index jumps 12.5% in a handful of sessions, you’re not exactly looking at a sleepy, slow-burn rally. That’s momentum territory. And momentum can be glorious — until it isn’t. The same move that pulls in buyers chasing the breakout can also leave the market looking a little overbought, which means any wobble can get exaggerated fast.
Why you should care
If you own Korean equities, have exposure to Asia, or just like watching markets do their best impression of a rocket, this is worth a look. Big index moves can spill over into:
- local financials and exporters
- sentiment across Asian markets
- short-term trading flows that chase strength, then bail when things get crowded
Big picture: the KOSPI is still climbing, but after a sprint like this, investors may start asking whether it’s a celebration rally or a “please don’t blink” rally.