South Korea's KOSPI index has recovered to the 8,100 level [2] after a sharp decline during a recent "Black Monday" sell-off.

This rebound signals a shift in investor sentiment as global macroeconomic pressures ease. The recovery is critical for stabilizing the South Korean market after a period of intense volatility that saw the index drop to 7,400 points [1].

Market analysts said the recovery is due to a combination of geopolitical and economic factors. The easing of the Middle East crisis led to lower oil prices, while U.S. Treasury yields and the dollar index also fell [5]. These shifts reduced investor concerns regarding further interest rate hikes.

Foreign investors played a pivotal role in this reversal. After 24 consecutive trading days of net selling [4], foreign buyers returned to the market, boosting overall sentiment and driving the index upward.

Investors are now monitoring whether the KOSPI can continue its momentum toward the 9,000 level [3]. However, the primary variable for future growth is the upcoming U.S. Federal Reserve rate decision scheduled for June 18 [6].

Current market expectations suggest a high probability that the Fed will maintain its current stance. According to the CME FedWatch tool, there is a 98.5% probability [5] that the Federal Reserve will hold rates steady during the meeting this week.

“KOSPI recovered to the 8,100 level after falling to 7,400”

The KOSPI's recovery demonstrates the high sensitivity of South Korean equities to U.S. monetary policy and geopolitical stability. While the rebound from the Black Monday low suggests a restoration of confidence, the heavy reliance on the Federal Reserve's decision on June 18 indicates that the market is not yet on a self-sustaining bull run, but is instead tethered to external macroeconomic triggers.