KOSPI Breaks 5,000 for the First Time Ever

KOSPI Breaks 5,000 for the First Time Ever

Trump ‘TACO’ reconfirmed… Rally led by semiconductors and robotics as geopolitics calm down

 

TACO = Trump Always Chickens Out

It means Trump always backs down in the end.

 

Report summary

  • KOSPI +1.9%, breaking 5,000 for the first time in history during the session
     
  • Trump-driven geopolitical risk: TACO (threat → withdrawal) reconfirmed
     
  • Gains centered on large-cap semiconductor and robotics (automobile and secondary battery) stocks
     
  • Volatility plunges, appetite for risk assets recovers

 

 

🌍 U.S. stock market trends

  • Previous day's losses recovered as geopolitical tensions eased
     
  • Trump attends the Davos Forum
    → Rules out the possibility of using military force regarding Greenland
    → Withdraws tariff threats against Europe
     
  • VIX plunges to 16.9 (-15.9%), a favorable environment for risk assets

 

Semiconductors

  • Continued strength centered on memory
     
  • Micron +6.5%, SanDisk +10.6%
     
  • Semiconductor equipment stocks such as KLA hit new highs

 

Japan

  • Japanese government bond yields stabilize
     
  • Finance minister makes a verbal intervention against the government bond sell-off
     
  • Interest rate jitters ease across Asia

 

 

🇰🇷 Korean stock market trends

  • Strength in large caps centered on semiconductors, automobiles and secondary batteries
  • Net buying led by individuals and pension funds
  • Foreigners +710 billion won in the morning
  • Pension funds +130 billion won
  • Semiconductors saw joint net buying by foreigners and institutions

 

By sector

  • Gainers: semiconductors, secondary batteries, automobiles, refining and chemicals, cosmetics
  • Decliners: healthcare, shipbuilding, defense, nuclear power

 

 

🔍 Sector interpretation

 

Semiconductors

  • In sync with the U.S. semiconductor record-high rally
  • Preliminary semiconductor exports for January (1st-20th)
    → DRAM and NAND both export value and selling prices favorable
  • The key driver of reaching KOSPI 5,000

 

Robotics and secondary batteries

  • Recent surge in robot-related stocks
  • Batteries for powering robots → reflecting expectations for commercialization of solid-state batteries
  • Automobiles and secondary batteries strong together

 

Cosmetics

  • Correction wrapping up after disappointing Q3 earnings
  • Walmart senior buying delegation visits Korea to source K-beauty
  • Rebound after passing the bottom

 

Industrials (shipbuilding and defense)

  • Today's weakness is in the nature of profit-taking
  • Among the top-performing sectors recently
  • Earnings and order environment remain favorable

 

 

🧠 Market interpretation

This break above 5,000 is
a combination of earnings-based semiconductors + the robotics theme

 

  • Earnings estimates have not turned down and remain on an upward trend
  • Trump-driven geopolitical risk once again ended early with TACO
  • A period to focus on earnings and fundamentals rather than short-term external noise

 

Policy

Democratic Party mentions "the era of KOSPI 7,000"

Expectations that policy support for the stock market will continue

 

 

📅 Earnings schedule

Korea: Samsung Electro-Mechanics, E&A (1/23)

Overseas: Intel (1/22)