SEOUL – South Korean stocks surged almost 2 percent on Friday, marking a fifth consecutive day of gains fueled by positive economic data from the United States that alleviated fears of a potential recession. The local currency also saw gains against the U.S. dollar, reflecting a broader market confidence.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) advanced by 52.73 points, reaching a close of 2,697.23, an increase of 1.99 percent. The trade volume was robust, with 375.9 million shares traded, valued at approximately 10.8 trillion won (US$7.95 billion). Market sentiment was buoyed by a net purchase of stocks by foreign investors who acquired 1.2 trillion won worth of shares, and institutions which bought up 217.3 billion won. Conversely, individual investors sold off stocks amounting to 1.45 trillion won.
This positive trend in Seoul’s stock market paralleled gains in major U.S. indexes, which rallied overnight. The Dow Jones Industrial Average increased by 1.4 percent, the S&P 500 by 1.61 percent, and the Nasdaq composite by an impressive 2.34 percent, following encouraging retail sales data suggesting continued consumer activity in the U.S. economy. Furthermore, the release of the U.S. consumer price index for July during Korea’s Liberation Day holiday provided additional optimism, strengthening the belief that the Federal Reserve may soon cut interest rates.
In Seoul, sectors leading the market rally included technology and automotive. Key players such as Samsung Electronics and SK hynix saw significant stock price increases of 3.89 percent and 6.96 percent, respectively. Hyundai Motor and its affiliate Kia also posted notable gains.
Despite the overall market uplift, some sectors like batteries and chemicals witnessed declines. Shares of LG Energy Solution and Samsung SDI fell slightly, along with a downturn in LG Chem’s stock.
The South Korean won also appreciated against the U.S. dollar, trading at 1,357.6 won, up from the previous session. However, bond prices fell, with yields on three-year Treasury bonds and the benchmark five-year government bonds rising slightly.