Seoul KOSPI gains 2.66% as inflation concerns ease
Foreign investors turned net buyers, acquiring 424.6 billion won in shares, while the Korean won strengthened against the US dollar.
Seoul Market Surge
Seoul's benchmark Korea Composite Stock Price Index (KOSPI) advanced by 2.66% on Friday, closing up 178.82 points at 6,894.23. This surge was attributed to reduced worries over inflation. The local currency also strengthened, with the Korean won trading at 1,383.3 against the US dollar by 3:30 p.m., an increase of 1.1 won from the previous session. Trading activity was moderate, recording 321.35 million shares exchanged, valued at 25.56 trillion won ($18.5 billion).
Investor Flows and Macro Factors
The KOSPI's performance reflected a shift in investor sentiment, with foreign capital returning to the market. Foreign investors purchased a net 424.6 billion won in shares, ending a seven-day selling streak. Institutional investors also contributed to the buying, acquiring a net 1.5 trillion won. Conversely, retail investors offloaded a net 3.59 trillion won.
Lee Kyoung-min, an analyst at Daishin Securities, noted that the KOSPI had moved past broader economic concerns, partly driven by momentum in artificial intelligence (AI) related stocks.
Chipmakers Lead Gains
Optimism surrounding AI memory demand buoyed major chip manufacturers. Samsung Electronics shares climbed 3.37% to 261,000 won, while rival SK Hynix saw a significant jump of 6.42%, reaching 1,857,000 won. These gains followed comments from Nvidia CEO Jensen Huang, who projected a doubling of chip sales volume next year compared to current levels.
In contrast, some other market heavyweights experienced declines: battery maker LG Energy Solution dipped 0.27% to 364,000 won, KB Financial fell 2.4% to 174,900 won, and shipbuilder HD Hyundai Heavy Industries shed 2.02% to 460,000 won.
The Federal Reserve's recent quarter-point interest rate hike, its first in over three years, has helped alleviate inflation concerns, contributing to the positive sentiment observed in Seoul.
This pivot by a major central bank could influence broader capital flows across Asia, potentially encouraging foreign investment into regional equity markets that demonstrate strong sector-specific growth, such as AI-driven technology.
Investors will be watching for similar shifts in other Asian indices as global inflation pressures ease, particularly how central banks like the Bank of Korea respond to evolving economic data.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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