KOSPI Snaps Winning Streak Amid Geopolitical Tension and BoK Policy Anticipation

The KOSPI index ended a four-day surge on Thursday, falling 1.61% to close at 5,778.01. The decline erased a portion of a recent rally that had seen the index climb more than 640 points, or 11.7%, over the previous four sessions. Trading volume reached 1 billion shares with a total value of 29.4 trillion won. The market's retreat was driven by sharp sell-offs in the technology and automotive sectors, though chemical stocks provided a buffer. Heavyweights took a significant hit, with Samsung Electronics dropping 3.09% and SK Hynix falling 3.39%. The automotive sector saw similar pressure, as both Hyundai Motor and Kia Motors plunged 3.64%. Conversely, Lotte Chemical surged 5.57% and LG Chem rose 3.05%. Global sentiment remained mixed as investors balanced positive momentum from Wall Street against renewed instability in the Middle East. U.S. indices closed higher, with the Dow adding 0.58% to 48,185.80 and the S&P 500 gaining 0.62% to 6,824.66. This positive lead from the U.S. may provide a catalyst for a KOSPI rebound on Friday. Energy markets reacted sharply to reports that Iran restricted naval traffic through the Strait of Hormuz, renewing supply disruption concerns. West Texas Intermediate (WTI) crude for May delivery rose 3.44% to $97.66 per barrel. However, some tension eased following comments from Israeli Prime Minister Benjamin Netanyahu regarding potential negotiations with Lebanon. Domestically, attention shifts to the Bank of Korea, which is concluding its monetary policy meeting. Market participants widely expect the central bank to maintain its benchmark lending rate at 2.50%.