SEOUL — South Korean stocks saw significant gains on Monday, with the Korea Composite Stock Price Index (KOSPI) rising more than 1 percent, as easing concerns over a U.S. economic recession buoyed investor sentiment. Despite the positive trends in the stock market, the local currency experienced a decline against the U.S. dollar.
According to Yonhap News Agency, an analyst at Shinhan Securities, the KOSPI increased by 29.87 points, reaching 2,618.30, a 1.15 percent rise and its second consecutive day of gains. This uptick follows a positive close on Wall Street last Friday, spurred by encouraging U.S. unemployment data that mitigated fears of an imminent recession. Market watchers are now anticipating upcoming U.S. economic reports, including consumer price, producer price, and retail sales data.
The market's upward movement was led by foreign and institutional investors who purchased shares worth 76 billion won and 149 billion won, respectively, contrasting with retail investors who sold off 206.4 billion won in stocks. Particularly notable were gains in the technology sector, where AI chip stocks like SK hynix saw significant increases, with SK hynix itself jumping 3.21 percent to 177,000 won. Roh highlighted the reduced concerns over an AI bubble as a factor in this rally.
Other major companies also posted strong performances. Samsung Electronics rose by 1.07 percent to 75,500 won, while LG Energy Solution and Samsung SDI experienced jumps of 2.02 percent and 3.06 percent, respectively. Celltrion, a major biopharmaceutical firm, surged over 2 percent to 200,000 won. However, not all sectors fared well; Naver, the internet portal operator, dropped 2.08 percent to 160,300 won, and HD Hyundai Heavy, a key player in defense and shipbuilding, fell 1.65 percent to 208,500 won.
The South Korean won closed weaker, trading at 1,372.0 won against the dollar by late afternoon, marking a decline of 7.4 won from the previous session.