Market Briefing — 2026-04-05

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Macroeconomic and Market Trends

① KOSPI Rallies 3% — First Foreign Net Buying in 12 Sessions

The KOSPI surged nearly 3% on Friday, April 4, driven largely by foreign investors returning as net buyers for the first time in 12 trading days. Samsung Electronics and SK Hynix led the recovery, though the KOSDAQ's gains were somewhat muted due to retail profit-taking.

② Institutional and Foreign Support vs. Retail Selling

Following an early rally, retail profit-taking tempered the KOSPI’s gains, and the KOSDAQ ended the day slightly lower. Despite the retail selling pressure, the market found support from foreign and institutional players.

③ March Inflation Hits 2.2% — Below Forecasts but Risks Remain

March consumer inflation came in at 2.2% year-on-year, missing market expectations. While government fuel tax cuts helped ease price pressures, the recent surge in global oil prices—now topping $100 a barrel due to the conflict in Iran—has analysts warning of potential upside risks to inflation, keeping it slightly above the central bank’s 2% target.

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Key Corporate and Sector Updates

① Samsung Electronics & SK Hynix — 2x Leveraged ETFs Approved

Financial authorities have officially approved the launch of single-stock 2x leveraged ETFs tracking Samsung Electronics (005930.KS) and SK Hynix (000660.KS). The move is designed to provide retail investors with more options for accessing major semiconductor stocks.

② Ex-JPMorgan Strategist Warns of 25% "Air Pocket"

Former JPMorgan chief strategist Marko Kolanovic described the recent market rally as "bizarre," warning that there is a 25% "air pocket" beneath AI and memory semiconductor stocks, including those in the EWY and SK Hynix. His outlook suggests that the current momentum may be fragile.

③ Regional Markets — Middle East Conflict Enters Week 5

Volatility continues to grip the Asia-Pacific region as the conflict in the Middle East enters its fifth week. While markets in Hong Kong, Singapore, and Australia were closed for the Easter holiday, the KOSPI and Nikkei remained active, with the KOSPI rising over 3% and the Nikkei up more than 1%.

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Market Analysis

Foreign Buying vs. Strategist Warnings — Sustainability is Key

The KOSPI’s technical rebound after 12 days of net foreign selling is a short-term positive, but as Kolanovic noted, the rally's sustainability remains questionable given concerns over AI valuations and oil price shocks. With oil exceeding $100 per barrel, upward pressure on inflation could dampen expectations for interest rate cuts, creating a difficult environment for stocks.

Leveraged ETFs as a Short-Term Catalyst

The introduction of 2x leveraged ETFs for Samsung and SK Hynix will make it easier for retail investors to trade these semiconductors. While this could act as a short-term liquidity booster, investors should be cautious, as leverage tends to amplify volatility during market downturns.

Retail Profit-Taking Creating Resistance

Retail investors locking in profits during Friday's session has acted as a ceiling for the KOSPI and KOSDAQ. While institutional and foreign support provided a cushion for the KOSPI, active selling from retail players may form a resistance level. Moving forward, the persistence of foreign inflows and developments in the Middle East will be the primary drivers of market direction.

All dates, figures, and company names are copied verbatim from sources. Statistics and figures reported only as explicitly stated in source materials.