KOSPI eyes recovery amid upcoming U.S. inflation data

South Korean stock markets are showing signs of recovery as investors await key U.S. inflation data. The KOSPI recently closed at 6,687.21, driven by significant net buying from foreign and institutional investors following a period of decline. Market participants are closely monitoring the upcoming release of the U.S. Producer Price Index (PPI) and Consumer Price Index (CPI), which are expected to serve as critical indicators for the Federal Reserve’s future monetary policy decisions.

In the semiconductor sector, major players like Samsung Electronics and SK Hynix have influenced market movement through share buybacks and cancellations. Analysts suggest that while volatility remains due to upcoming options and futures expiration, the potential for a rebound toward the 7,000 level exists if U.S. inflation continues to show signs of cooling.

Separately, individual investors in South Korea have maintained a 32-month streak of net buying in Exchange Traded Funds (ETFs), despite recent sluggishness in the KOSPI. While the total net assets of the ETF market have decreased due to falling market prices, consistent demand—particularly from retirement pension funds—continues to support the sector.