Why did the KOSPI index rise about 5% today?

Tech strength led by AI-chip optimism boosted risk appetite, supported by expectations for better memory pricing and capex. Foreign investors turned sizable net buyers and a stronger won amplified gains. Broader participation beyond mega caps improved market breadth, helping South Korea stocks rally and lifting the KOSPI index.

How large were foreign inflows, and what is the INR equivalent?

Foreigners bought over KRW 700 billion today. Based on recent exchange rates, that is roughly ₹4,300 crore. The INR figure is an approximation and can vary with currency moves, but it shows meaningful scale and helps explain the strong bid for the KOSPI index.

What does the KOSPI jump mean for Indian portfolios?

It signals improving global tech sentiment, which can support Indian IT and select capex themes. Asia ex-Japan funds with South Korea exposure may benefit if inflows continue. Currency and rate shifts remain key. Track hedging costs and earnings guidance, as these factors can quickly change outcomes for the KOSPI index.

What risks could reverse the KOSPI index rally?

Weak US chip earnings, softer AI server demand, or reduced capex could hurt sentiment. A sharp rise in yields, a weaker won, or slower reform progress may also weigh on flows. Any of these can narrow breadth and pressure the KOSPI index after today’s strong move in South Korea stocks.

Global Market Insights

^KS11 Today, February 4: KOSPI Soars 5% on AI Chip Rally, Foreign Inflows

ByHuzaifa Zahoor February 3, 2026February 3, 2026

The KOSPI index surged about 5% today, February 4, as AI-chip optimism lifted South Korea stocks and foreign inflows topped KRW 700 billion. A stronger won added to gains, while local bonds softened as risk appetite returned. For Indian investors, the KOSPI index move signals improving global tech sentiment, potential spillovers to Nifty IT, and fresh interest in Asia equities. KRW 700 billion is roughly ₹4,300 crore based on recent rates, a notable cross-border bid that often supports regional flows and risk-on positioning.