📊 Market Summary
- KOSPI: 2,946.66 (+1.80%)
- KOSDAQ: 777.27 (+1.09%)
- KRW/USD Exchange Rate: 1,361.00 KRW (−0.55%)
Despite heightened geopolitical risks in the Middle East, the Korean stock market extended its rally, driven by strong export data and favorable policy momentum. The KOSPI broke above the 2,940 level, continuing its upward momentum.
📰 Major News and Market Highlights
1. 🌐 Geopolitical Risks in the Middle East Trigger Risk-Off Moves
Tensions between Israel and Iran pushed oil prices up 7%, alongside strength in gold and the U.S. dollar. However, KOSPI remained resilient, with investors treating the event as a short-term shock.
2. 💹 KOSPI Extends Winning Streak to 7 Sessions
Backed by robust exports and renewed policy optimism under the Lee Jae-myung administration, the KOSPI closed at 2,946.66. Leading sectors included defense, energy, and semiconductors.
3. 🛡 Defense Stocks Soar
Middle East turmoil fueled expectations of increased global defense spending. Hanwha Systems and Hanwha Aerospace saw significant gains.
4. 📉 Foreign Net Selling Offset by Institutional & Retail Buying
Foreign investors offloaded 322.4 billion KRW worth of stocks, but institutional (+252.5 billion KRW) and retail (+45.2 billion KRW) investors bought aggressively, sustaining the index’s upward trajectory.
5. 💱 Korean Won Strengthens
Despite global risk aversion, the won appreciated to 1,361 KRW per dollar, reflecting a mix of stabilized capital flows and short-term positioning ahead of the U.S. Fed meeting.
🔮 Outlook & Key Upcoming Events
- June 18 (Wed): U.S. FOMC Meeting( Announcement of the Base Rate )
- June 18 (Wed): U.S. May Retail Sales
- June 19–20: Monitoring for U.S.–China negotiations & Middle East developments
- June 20 (Fri): Korea’s Industrial Output and other key data releases
These events will be pivotal in shaping interest rate expectations, trade narratives, and global sentiment.
💡 Conclusion & Investment Strategy
📌 Conclusion
Despite rising geopolitical tensions, the Korean stock market continued its rally, underpinned by export strength and local institutional buying. The recent conflict has so far been interpreted as a short-term event.
📌 Investment Strategy
- Increase exposure to defense and energy: Beneficiaries of geopolitical unrest
- Follow institutional buying patterns: Especially in IT, construction, and consumer sectors
- Utilize currency-hedged ETFs: To capture opportunities from won appreciation
- Add safe-haven assets ahead of FOMC: Gold and bonds as volatility buffers
- Adopt phased buying strategy: Hold cash for post-event volatility trades
📝 Final Thoughts
Markets remain remarkably stable despite geopolitical shockwaves. Experts generally believe the conflict’s impact will be short-lived. Still, with key events such as the FOMC and global economic data ahead, investors should stay alert. This is a time for a well-balanced portfolio and agile decision-making.