{"id":49346,"date":"2026-05-19T11:35:23","date_gmt":"2026-05-19T11:35:23","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/19\/kospi-index-slips-as-south-korean-bond-yields-jump-buy-the-dip\/"},"modified":"2026-05-19T11:35:23","modified_gmt":"2026-05-19T11:35:23","slug":"kospi-index-slips-as-south-korean-bond-yields-jump-buy-the-dip","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/19\/kospi-index-slips-as-south-korean-bond-yields-jump-buy-the-dip\/","title":{"rendered":"Kospi Index slips as South Korean bond yields jump: buy the dip?"},"content":{"rendered":"
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The Kospi Index retreated into a correction as the recent rally takes a breather amid overheating concerns. It retreated to KRW 7,250, down by 10% from the year-to-date high of KRW 8,038. It remains up by over 72% this year and 178% in the last 12 months. So, is this the end of the Kospi Composite Index rally?<\/p>\n

South Korean stocks retreat amid overheating concerns<\/h2>\n

The Kospi Index has pulled back in the past few days, moving from the year-to-date high of KRW 8,038 earlier this month to the current KRW 7,250. <\/p>\n

This retreat has coincided with the rising concerns that the rally has led to overheating concerns. A good example of this is the fact that some foreign investors have continued selling their shares. They dumped over $13.2 billion in shares last week, fueling market volatility to a record high.<\/p>\n

There are signs that some South Korean investors have also started selling their shares. Besides, these investors have already seen their wealth grow exponentially since last year. <\/p>\n

Some of the hottest stocks have pulled back in the past few days. Samsung Electronics dropped<\/a> to KRW 277,500 from the year-to-date high of 299,000. SK Hynix shares have tumbled to KRW 1.79 million from the year-to-date high of KRW 2 million. <\/p>\n

Still, analysts believe that the Kospi Index is still not expensive enough. For example, the index has a PE ratio of about 27, a few points above the S&P 500 Index\u2019s 23. Also, the index is cheaper than the Nasdaq 100 Index, which has a multiple of 35.<\/p>\n

A potential catalyst for the index is the upcoming NVIDIA earnings<\/a> that comes out on Wednesday this week. Strong numbers may point to more gains in semiconductor stocks that may benefit Samsung and SK Hynix.<\/p>\n

South Korean bond yields have jumped<\/h2>\n

Meanwhile, there are concerns that the South Korean bonds have dumped in the past few months. Data shows that the ten-year yield jumped to 4.30% from the year-to-date low of 3.27%. Similarly, data shows that the five-year yield has jumped to 4.06%. <\/p>\n

Rising bond yields have continued amid the ongoing Iran war, which has pushed South Korean inflation higher. Recent data shows that the South Korean inflation has jumped to 2.6% in April this year as energy costs remain elevated. <\/p>\n

South Korean companies are affected by the rising yields because it boosts the amount they pay when borrowing. <\/p>\n

At the same time, the South Korean won has continued falling in the past few days. The USD\/KRW pair rose to 1,505, its highest level since April 7 this year. It has jumped by 4.63% from its lowest point last month.<\/p>\n

Kospi Index technical analysis <\/h2>\n
<\/figure>\n

Kospi Index chart | Source: <\/em>TradingView<\/em><\/a><\/p>\n

The daily chart shows that the Kospi Composite Index has pulled back in the past few days. It has slumped from the year-to-date high of KRW 8,048 to the current 7,225. This retreat happened as it formed a small double-top pattern, a common bearish reversal sign.<\/p>\n

The two lines of the Percentage Price Oscillator have formed a bearish crossover and are pointing downwards. Also, the Relative Strength Index (RSI) has moved from the extreme overbought level of 84 to the current 56.<\/p>\n

Therefore, the index may continue falling as sellers target the key support level at KRW 6,354. A move above the YTD high of 8,048 will invalidate the bearish outlook.<\/p>\n

The post Kospi Index slips as South Korean bond yields jump: buy the dip?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Kospi Index retreated into a correction as the recent rally takes a breather amid overheating concerns. It retreated to KRW 7,250, down by 10% from the year-to-date high of KRW 8,038. It remains up by over 72% this year and 178% in the last 12 months. So, is this the end of the Kospi <\/p>\n","protected":false},"author":1,"featured_media":49347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-49346","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49346"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49346\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49347"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}