South Korea's Kospi Hits Record High Amid Regional Market Gains

South Korea's benchmark Kospi index surged to 3,487.62 on January 12, 2026, closing at a record high amid broad gains across Asia-Pacific markets. The rally was supported by robust performance in tech and financial sectors, with key components Samsung Electronics and SK Hynix contributing significantly to the index's rise. Regional markets in Japan, China, and Australia also posted positive returns, reflecting improved investor sentiment despite persistent global uncertainties. The advance comes amid a backdrop of fluctuating oil prices, with Brent crude trading at $87.40 per barrel, slightly down from earlier highs. The price movement follows continued anti-government protests in Iran, where supply disruptions have raised concerns over potential market volatility. U.S. policy signals, including reported deliberations by former President Donald Trump on possible intervention options, have added to market sensitivity, though no formal actions have been announced. Market analysts noted that domestic fundamentals remain strong, with South Korea’s Q4 2025 GDP growth reported at 2.3% and a steady decline in unemployment to 2.8%. These macroeconomic indicators bolstered confidence in equities, particularly in export-oriented industries. Foreign institutional investment in Korean stocks reached $1.4 billion in the past week, the highest weekly inflow since August 2024. The gains in the Kospi reflect broader regional momentum, with Australia’s ASX 200 rising 1.2% and Japan’s Nikkei 225 gaining 0.9%. However, markets remain sensitive to geopolitical developments and energy price dynamics, with traders monitoring oil markets closely for signs of further escalation.