Seoul:Seoul shares experienced a significant rise for the second consecutive session, driven by a strong rally in technology stocks despite ongoing concerns about potential aggressive monetary tightening due to hotter-than-expected U.S. inflation rates.
According to Yonhap News Agency, the Korean won also traded higher against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) opened 0.56 percent lower but closed up by 136.23 points, or 2.6 percent, at 5,375.36. The index had peaked at 5,377.99 during the session. The trade volume was recorded at 219 million shares, valued at 16.3 trillion won (approximately US$12.2 billion), with gainers surpassing losers 573 to 295.
Foreign investors purchased a net 655.26 billion won worth of stocks, while institutions and individuals sold a net 481.67 billion won and 715.69 billion won, respectively. On the previous day, the index had climbed 4.39 percent, supported by a rally in U.S. technology stocks and decreasing oil prices.
Local stocks defied the overnight declines on Wall Street, where the Dow Jones Industrial Average declined by 0.3 percent and the Nasdaq composite fell by 0.74 percent. Hyundai Motor Securities noted that comments from former U.S. President Trump, suggesting a reduced likelihood of military action against Iran, contributed to the decrease in oil prices. Additionally, bargain hunting in artificial intelligence-related stocks helped buoy the market.
U.S. consumer prices increased by 0.3 percent in October compared to the previous month, surpassing market expectations and raising concerns that the Federal Reserve might adopt a more aggressive policy to control inflation. Investors are also focusing on Anthropic's planned initial public offering (IPO) set for next week.
In Seoul, technology and defense stocks led the gains. Samsung Electronics, a market bellwether, rose by 3.57 percent to 206,000 won, while SK hynix, its chipmaking competitor, climbed 5.36 percent to 1.28 million won. Korea Aerospace Industries saw an increase of 7.71 percent to 109,000 won, and LIG Defense & Aerospace surged 9.73 percent to 372,000 won. However, Hyundai Motor, a leading car manufacturer, declined by 0.91 percent to 272,500 won, and Hanjin KAL, the parent company of Korean Air, dropped 14.64 percent to 204,000 won.
As of 330 p.m., the dollar was quoted at 1,333.6 won against the U.S. dollar, an improvement from the previous session's close of 1,337.5 won.