S. Korean stocks rebound on Tuesday

South Korean equities rebounded on Tuesday, rising for the first time since last week’s brief martial law-instigated political turmoil. The Kospi Index climbed 2.4 per cent, while the small-cap Kosdaq surged 5.5 per cent.

Despite a $100 billion market value loss over the previous four sessions, some investors view Tuesday’s rally as a sign of stabilisation. The won also rose 0.4 per cent to 1,425.50 per dollar.

Authorities have pledged to stabilise sentiment, calling recent market movements “excessive” relative to economic fundamentals. While political uncertainties persist, with opposition calls for President Yoon Suk Yeol’s removal following his narrow escape from impeachment, market sentiment showed cautious optimism.

Investors, including institutional players, increased holdings in Kospi stocks, while foreigners and retail investors sold. The rally comes amid ongoing political instability, with Yoon banned from overseas travel due to probes into his martial law decree.

Despite the recent gains, experts caution that further volatility is likely as political tensions continue.

Attribution: Bloomberg

Subediting: M. S. Salama