KOSPI Crossed 7,000 — So Where Did the Middle East Risk Go?

The KOSPI hit 7,064. It crossed back above the 7,000 mark for the first time in 15 trading days. Samsung Electronics rose 1.5%, SK Hynix climbed 3.4%, and institutional investors led the charge. On the surface, it was a good day.

But on the same day, oil prices surged. Tensions in the Middle East flared again, and the Korean won fell to its lowest level against the dollar this year. A weaker won means Korean assets are getting cheaper in dollar terms.

So how can both things happen on the same day? That's just how markets work. An index is an average — it mixes winners and losers. Today, semiconductors were strong enough to paper over the other risks.

Crude oil ETFs topped returns this week. Investors betting on Middle East risk made money. Investors betting on chips also made money. Oddly enough, both worked at the same time.

The question is how long that coexistence lasts. If oil keeps rising, inflation pressure builds. That would reduce expectations for rate cuts — and eventually that hits semiconductor valuations too. Right now, chips are winning against the headwinds. But that balance doesn't hold forever.

Crossing 7,000 is meaningful. But reading today's index number alone as 'everything's fine' would be a mistake. Oil jumped on the same day. The won weakened too. Markets never tell just one story.