SEOUL — South Korean stocks rose for the fourth consecutive day on Wednesday, buoyed by hopes of upcoming rate cuts by the U.S. Federal Reserve following cooler-than-expected U.S. producer price data. The Korea Composite Stock Price Index (KOSPI) saw a significant increase, and the local currency experienced a notable rise against the U.S. dollar.
According to Yonhap News Agency, the KOSPI gained 23 points, closing up 0.88 percent at 2,644.50. The optimism was sparked by the latest U.S. Producer Price Index (PPI), which came in lower than anticipated, easing concerns over the U.S. economic outlook and fueling speculation about potential easing of monetary policy. Lee Kyoung-min, an analyst at Daishin Securities, noted that foreign investors were particularly active, purchasing 389.9 billion won worth of shares, which helped offset a combined sell-off of 430.1 billion won by retail investors and institutions.
The positive sentiment was also reflected in major U.S. stock indices, which gained sharply overnight, influenced by the performance of major tech and energy stocks. In South Korea, tech giants like Samsung Electronics and SK hynix saw their shares rise by 1.45 percent and 2.64 percent, respectively, mirroring gains by Nvidia in the U.S. market. Similarly, LG Energy Solution’s shares increased by 2.64 percent, reflecting gains by Tesla.
However, not all sectors fared well; the automotive sector saw declines, with Hyundai Motor and Kia experiencing drops in their stock prices. Additionally, Samsung Life Insurance and JYP Entertainment also faced significant losses.
The won strengthened against the dollar, trading at 1,360.6, up 9.8 won from the previous session’s close. Investors are now looking ahead to the upcoming release of the U.S. consumer price index and retail sales data later this week, which could further influence global market trends and monetary policy decisions.