The KOSPI Composite Index jumped 5.5% to climb back above 5,500 on Tuesday, fully reversing the previous session’s losses. A pullback in oil prices helped ease market concerns about a potential resurgence in inflation, improving risk sentiment. The rally followed comments from US President Donald Trump indicating that the conflict with Iran could soon wind down, alongside his announcement of measures aimed at containing oil prices. In addition, G7 finance ministers stated that the group “stands ready” to tap strategic oil reserves if necessary.
On the domestic front, final data showed that South Korea’s economy shrank 0.2% in the fourth quarter, a modest improvement from the initially reported 0.3% contraction, as weakening domestic demand and falling non-semiconductor exports weighed on growth. Semiconductor bellwethers Samsung Electronics and SK Hynix surged 8.2% and 9.8%, respectively, while notable gains were also recorded by Woori Technology (9.6%), Doosan Enerbility (7%), and Hyundai Motor (4.7%).
