Expectations of Eased Trump Tariff Risks.. KOSPI Breaks 2700 Mark After 9 Months

[Financial News] The KOSPI index reclaimed the 2700 mark after 9 months. Investor sentiment improved due to expectations of eased tariff risks from the United States, Nvidia's performance exceeding estimates, and the effects of interest rate cuts. In particular, the index rise was led by massive buying from institutions and foreigners, approaching 1 trillion won.
According to the Korea Exchange on the 29th, the KOSPI index closed at 2720.64, up 50.49p (1.89%) from the previous trading day. It is the first time since August 23 last year that the KOSPI has recovered the 2700 mark based on closing prices. The index's increase rate on this day is also the highest in 10 months.
The impact of the U.S. court ruling that President Donald Trump's reciprocal tariff policy exceeded his authority and was illegal was significant. The signs of easing U.S.-originated tariff risks, which had weighed down the stock market, revived buying sentiment. In addition, Nvidia's sales exceeded market expectations at 44 billion dollars, and the Bank of Korea lowered the base interest rate.
On this day, the Bank of Korea's Monetary Policy Committee lowered the base interest rate from 2.75% to 2.50% by 0.25%p. This base rate cut is interpreted as a response by the monetary authorities to the increased risk of economic downturn due to negative growth in the first quarter and export slowdown due to U.S.-originated tariff concerns. Furthermore, the Bank of Korea significantly lowered its growth forecast for this year to the 0% range through a revised economic outlook, leaving open the possibility of further rate cuts after the second half of the year.
Experts agree that the KOSPI breaking the 2700 mark is a psychological turning point, but they also foresee that the market will remain sensitive to global interest rates and exchange rate variables for the time being. A securities firm official analyzed, "The index is showing a gradual upward trend due to earnings recovery and valuation normalization, but for a re-break of the 3000 mark by the end of the year, continued foreign buying and exchange rate stability are needed."
Gong Dong-rak, a researcher at Daishin Securities, said, "Despite the base rate freeze at the Monetary Policy Committee meeting last April, the monetary authorities directly hinted at future cuts, and Bank of Korea Governor Lee Chang-yong has focused on dispelling doubts about the accommodative monetary policy stance whenever there was an opportunity." He continued, "The market's interest is more focused on how far the monetary authorities will lower the base rate after the second half of the year than on this MPC decision."
Kim Myung-sil, a researcher at iM Securities, said, "It is judged that the Bank of Korea mentioned the potential side effects of the ongoing rate cut policy in principle rather than a major change in the current framework," and "Considering the expansion of downside risks or uncertainties such as tariff policies, the possibility of changing the current stance seems low." Meanwhile, the won-dollar exchange rate turned weak in just one day, recording 1375.9 won at 3:30 p.m. based on the closing price. 
dschoi@fnnews.com Choi Doo-sun Reporter