Seoul stocks rise on Fed caution, AI-driven export strength
Quick Look
- Seoul stocks rose Friday morning as U.S.
- Federal Reserve Governor Christopher Waller signaled a cautious stance on further rate hikes, easing market concerns.
- The KOSPI gained 1.24% to 6,661.22, driven by gains in Samsung Electronics and SK hynix, while South Korea's trade surplus extended for a 39th consecutive month due to AI-related export strength.
AI-generated summary
Why It Matters
Seoul stocks were trading higher as remarks from a U.S. Federal Reserve governor eased concerns over further rate hikes. South Korea also extended its account surplus in July, driven by strong exports from the artificial intelligence boom.
SEOUL, Sept. 4 (Yonhap) -- Seoul stocks were trading higher late Friday morning as remarks from a U.S. Federal Reserve governor eased concerns over further rate hikes.
The benchmark Korea Composite Stock Price Index (KOSPI) was trading up 81.74 points, or 1.24 percent, to 6,661.22, as of 11:20 a.m.
Risk appetite revived after Federal Reserve Gov. Christopher Waller signaled a cautious stance on further rate hikes.
South Korea also extended its account surplus in July, driven by strong exports from the artificial intelligence (AI) boom, Bank of Korea data showed.
July was the 39th consecutive month the balance has remained in the black.
Most market top caps were trading higher.
Chip giant Samsung Electronics added 1.8 percent, while industry rival SK hynix advanced 2.57 percent.
Top carmaker Hyundai Motor slid 0.26 percent, while battery maker LG Energy Solutions fell 1.64 percent, and financial firm KB Financial dipped 2.53 percent.
The Korean won was quoted at 1,358.1 won against the U.S. dollar as of 11:20 a.m., down 0.6 won from the close of the previous stock trading session.
What to Watch
AI outlook — possibilities, not facts
The KOSPI may continue to rise if the U.S. Federal Reserve maintains a cautious stance on rate hikes.
Possible · Within weeks
South Korea's trade surplus may extend beyond 39 consecutive months if AI-driven export strength persists.
Possible · Within months
Open Questions
- How long will the current risk-on sentiment in Seoul stocks last?
- Will the Bank of Korea adjust its monetary policy in response to the Fed's stance?
- Which specific AI-related exports contributed most to the trade surplus?
