Kospi reclaims 8,000 as foreign investors end 24-session selling streak

The Kospi reclaimed the 8,000 mark on Friday as foreign investors reversed course and turned to large-scale net buying, ending a 24-session selling streak.

Investor sentiment improved after US President Donald Trump called off planned airstrikes on Iran and signaled progress in ceasefire negotiations, prompting foreign investors and institutions to buy in tandem and drive the index sharply higher. The Kospi surged more than 8 percent intraday, with semiconductor heavyweights Samsung Electronics and SK Hynix leading the rally.

Korea Exchange data showed the Kospi opened up 499.90 points, or 6.44 percent, at 8,263.85 and climbed as high as 8,424.13 — a gain of 8.50 percent — during the session. As of 10 a.m., the index was trading at 8,379.22, up 7.92 percent.

The sharp rise in Kospi futures triggered a sidecar — a temporary suspension of program-buy orders — in the early minutes of trading on the main bourse. It was the second sidecar activation on the Kospi since Wednesday and the 13th buy-side sidecar of the year. A sidecar was triggered on every trading day this week except Thursday.

Foreign investors, who had sold for 24 consecutive sessions through Thursday, swung to net purchases of 871.7 billion won (about $571 million) on the main market. Institutions were also net buyers at 792.2 billion won, while retail investors were net sellers at 1.58 trillion won.

The moves followed a broad Wall Street rally overnight after Trump said a ceasefire agreement with Iran was imminent. The Dow Jones Industrial Average closed up 1.86 percent, while the S&P 500 and the Nasdaq Composite rose 1.75 percent and 2.54 percent, respectively.

Trump, who had threatened airstrikes on Iran for three consecutive days, said discussions with Tehran had been elevated to Iran's supreme leadership and received approval. He announced he had called off airstrikes and bombing runs against Iran that had been scheduled for Friday evening.

Speaking to reporters at a White House event the same day, Trump said ceasefire negotiations with Iran had reached the final document-drafting stage, and that a signing ceremony could take place in Europe this weekend.

South Korean stocks surged in response, with the Kospi reclaiming the 8,000 level for the first time since Tuesday. The country's two leading semiconductor stocks were among the biggest gainers.

Samsung Electronics jumped 11.87 percent to 334,500 won, reclaiming its place above the 300,000-won threshold. SK Hynix rose 8.28 percent to 2,275,000 won. Most of the top-50 stocks by market capitalization — including SK Square, Samsung Electro-Mechanics, Hyundai Motor, LG Energy Solution and Samsung Life — were also trading higher.

However, the fear gauge remained elevated, staying above the 80 level. The KOSPI 200 Volatility Index, South Korea's equivalent of the VIX, fell 2.34 percent from the previous session to 85.25 but has held above 80 for four consecutive sessions.

The Kosdaq also recovered the 1,000 mark, opening up 30.12 points, or 3.02 percent, at 1,027.05 and sustaining gains of 2 to 3 percent during the session. On the Kosdaq, retail investors were the sole net buyers at 91.7 billion won, while foreign investors and institutions were net sellers of 76.7 billion won and 26.4 billion won, respectively, capping the index's upside.

The won strengthened against the dollar as geopolitical uncertainty eased, though it remained above the 1,500 level. The won opened at 1,518.0 per dollar in the Seoul foreign exchange market, 10.9 won stronger than the previous session's close.