Kospi Nears Technical Turning Point as Won Strengthens

The Kospi rose about 1% to 6,663 on Friday while the South Korean won strengthened to 1,355 per dollar, marking its lowest level since June last year. Traders positioned for calm ahead of the U.S. nonfarm payrolls report and reacted to gains in major technology names.

Samsung Electronics climbed about 1.8% and SK Hynix gained more than 2.7%. SK Square, which holds a large stake in SK Hynix, rose more than 3.2%, and Samsung Electro-Mechanics advanced over 2%. At the same time, Hyundai Motor, LG Energy Solution, Samsung Biologics and KB Financial Group were trading lower. Stocks tied to artificial intelligence rose after the release of the Astra model from a major AI developer and following strong quarterly results from hardware suppliers such as Dell and HPE.

Market participants cited easing geopolitical tensions after a recent Iranian strike on targets in Kuwait, and the United States did not carry out a retaliatory strike. Crude oil prices steadied, with Brent near $96 a barrel and West Texas Intermediate around $92. South Korea’s benchmark yields pulled back from earlier highs this week, with the 10-year yield at about 4.35% and the 30-year at roughly 4.634%.

The won’s appreciation to 1,355 per dollar reflects recent monetary policy tightening and stronger demand for Korean assets. The USD/KRW rate is about 13% lower than its peak earlier this year. Officials have proposed a 2026 budget of roughly $597 billion and plan to allocate 162.3 trillion won (about $120 billion) to a Future Response Fund for long-term investments. Authorities also reported a roughly 40% increase in tax receipts, which they linked to higher economic activity from AI-related sectors.

On technical charts, the Kospi has formed a symmetrical triangle while trading below its 100-day exponential moving average, and the Percentage Price Oscillator remains below the zero line. Analysts flagged that a break below the triangle’s lower trendline could expose the index toward the 6,000 level, while a sustained break above the upper trendline would indicate further upward momentum. Domestic household deleveraging and the U.S. payrolls report are cited by market participants as factors that could influence the next directional move.