South Korea’s KOSPI overcame a tariff shock and on Jan. 27 broke above the 5,000 mark on a closing basis for the first time.

The KOSPI ended at 5,084.85, up 135.26 points, or 2.73 percent, from the previous session. It was the first close above 5,000 after it first topped 5,000 on an intraday basis on Jan. 22.

The KOSPI had failed to break into the 5,000 range, ending at 4,990.07 on Jan. 23 and 4,949.59 on Jan. 26. It staged a strong rebound after shaking off negative news about U.S. Trump tariffs.

The KOSPI opened down 0.34 percent at 4,932.89 shortly after the open after U.S. President Trump said he would raise tariffs on South Korean products, including automobiles, timber and pharmaceuticals, to 25 percent from 15 percent.

Hyundai Motor and Kia at one point fell 6.8 percent and 5.9 percent intraday, respectively, deepening losses. The index then began to climb rapidly as foreign and institutional investors turned into net buyers. Strong buying in large-cap stocks, centred on the semiconductor sector, was a key factor that lifted the index despite tariff-related negatives from Trump.

Flows diverged sharply. Foreign investors were net buyers of 627.3 billion won, and institutions were net buyers of 352.1 billion won, driving the rise. Retail investors were net sellers of 923.1 billion won as they took profits.

Most of the top stocks by market capitalisation posted gains. Samsung Electronics rose 4.87 percent. SK Hynix climbed 8.70 percent to break above 800,000 won for the first time. Other large caps across sectors, including Doosan Enerbility, up 1.96 percent, and SK Square, up 7.26 percent, also extended gains.

Hyundai Motor fell 0.81 percent, and Kia dropped 1.10 percent, as tariff concerns continued to weigh.

The KOSDAQ also rose. It ended up 12.37 points, or 1.71 percent, at 1,082.59, closing at its intraday high.

Institutions were net buyers of 1.59 trillion won, leading gains. Retail and foreign investors sold about 1.40 trillion won and 124.5 billion won, respectively.