Korean stocks rally after best week since 2008, chart levels to watch
South Korean equities surged last week for their biggest weekly gain since the 2008 financial crisis, with traders now eyeing key resistance levels for the next leg.
South Korean stocks posted their strongest weekly performance since the 2008 global financial crisis last week, fueled by a combination of foreign buying and optimism over tech exports. The Kospi index surged more than 8% over the five sessions, breaking above its 50-day moving average and approaching the 200-day moving average, a level that has acted as resistance in recent months.
The rally comes as global investors rotate into Asian equities amid expectations that the Federal Reserve may pause its rate-hiking cycle. For equity traders, the move in Korean stocks is significant because the market had been underperforming its regional peers for much of 2026. The breakout above the 50-day moving average signals a potential shift in momentum, but the 200-day moving average near the 2,700 level will be a critical test. A sustained move above that could open the door to further gains, while a rejection may lead to consolidation. For current pricing context, traders can check NowPrice's stocks page for real-time Kospi levels and sector performance.
Looking ahead, the key catalyst will be the Bank of Korea's next policy decision and export data from the semiconductor sector. The Kospi's relative strength index has moved into overbought territory after last week's surge, suggesting a short-term pullback is possible before the next leg higher. Traders will also watch for any signs of a slowdown in global tech demand, which could weigh on Korea's export-heavy index. If the index can hold above the 50-day moving average on any pullback, the bullish case remains intact.