Seoul’s KOSPI Rebounds Slightly Amid Lingering Concerns Over High U.S. Treasury Yields

Seoul-South Korean stocks experienced a modest rebound on Friday, following a dramatic drop in the previous trading session, attributed to ongoing concerns over elevated U.S. Treasury yields. The local currency also appreciated against the U.S. dollar.

According to a new release by Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose by 3.73 points, or 0.16 percent, closing the day at 2,302.81.

Trading volume for the day remained moderate, with 505.8 million shares exchanging hands at a total value of 7.8 trillion won (approximately US$5.8 billion). Outperforming stocks slightly exceeded those in decline, with 444 gainers against 420 losers. Foreign investors offloaded a net 378.8 billion won in local shares, whereas retail investors and institutions injected 100.4 billion won and 221.9 billion won, respectively, into the market.

All three major U.S. indexes closed lower overnight due to disappointing tech earnings, notwithstanding robust economic growth data from the United States. The U.S. economy grew 4.9 percent in the third quarter, marking the most potent expansion in nearly two years.

Investor sentiment now centers on the Federal Reserve's next moves, particularly concerning the interest rate hike cycle. According to Choi Yoo-joon, an analyst at Shinhan Securities Co., the KOSPI managed to cross the 2,300 threshold as retail investors and institutions took the opportunity to purchase undervalued stocks, notably in the battery sector.

Tech and battery stocks, which had recently faced intense selling pressure, led the market's slight recovery. Market leader Samsung Electronics rose 0.9 percent to 67,300 won, while the nation’s second-largest chipmaker, SK hynix, slipped 0.75 percent to 119,100 won. In the battery sector, LG Energy Solution increased by 0.13 percent to 400,000 won, Samsung SDI surged by 6.86 percent to 452,200 won, and POSCO Future M gained 0.8 percent to 251,500 won.

The local currency closed the session at 1,355.90 won against the U.S. dollar, up 4.1 won from Thursday’s close. Bond prices rose, resulting in a yield drop; the yield on three-year Treasurys declined 3.1 basis points to 4.073 percent, and the return on five-year government bonds fell 6.7 basis points to 4.170 percent.

scroll to top