The closing prices of the KOSPI and Kosdaq, along with the won-dollar exchange rate, are displayed on monitors in the dealing room of Hana Bank in Seoul, Tuesday, the final trading day of 2025. Yonhap
Simultaneously occurring, shifts in U.S. monetary policy are emerging as a significant gray rhino for global equity markets.
The Donald Trump management is reportedly considering Kevin Hassett, a long-time conservative economist and key Trump economic adviser, as a potential replacement for Federal Reserve Chair Jerome Powell when his term expires in May. Given Hassett’s reputation for favoring monetary easing,speculation is growing that the dollar could weaken over the long term under new leadership at the Fed.
although these factors present risks that could increase market volatility, they could also create opportunities for relief rallies as uncertainty diminishes, analysts pointed out.Trump’s tariff provocations in early 2025, initially seen as the year’s biggest threat, ultimately spurred a stock market rebound as negotiations progressed, serving as a prime example.
Building on this optimism, some brokerages predict the KOSPI, which exceeded 4,000 for the first time last year, could climb further, potentially reaching 5,000.
NH Investment & Securities and Hyundai Motor Securities have offered the most bullish forecasts, setting a target of 5,500 for the index.
“The anticipated start of an interest rate-cut cycle in the U.S. and other major economies will likely expand market liquidity, while the ongoing global surge in AI investment will continue to drive strong gains in the semiconductor sector and support AI-related stocks as market leaders,” Hyundai Motor Securities stated in its report. “The KOSPI is expected to benefit from foreign net buying and the strong performance of U.S. AI equities, with the semiconductor industry likely fueling further upward momentum.”
On Tuesday, the final trading day of 2025, the KOSPI decreased 6.39 points, or 0.15 percent, closing at 4,214.17.for the entire year, the index rose approximately 76 percent, ranking first in returns among G20 and OECD nations.
