South Korean Shares Rise Nearly 2% on Chip Stock Gains
Institutional investors scoop up major chip shares as South Korea's September exports soar.
Quick Look
South Korean shares rose 1.95 percent on Thursday, snapping a three-session losing streak as institutional investors bought major chip shares following a surge in September exports.
AI-generated summary
Why It Matters
South Korean shares rebounded following institutional buying in chip makers and robust export figures.
South Korean shares rose nearly 2 percent on Thursday, snapping a three-session losing streak, as institutional investors scooped up major chip shares. The Korean won weakened against the US dollar.
The benchmark Korea Composite Stock Price Index gained 133.31 points, or 1.95 percent, to close at 6,917.35.
The index opened lower as investors digested a series of negative factors, including persistent pressure from elevated US Treasury yields, but pared its losses as chip stocks gained.
Overnight, Wall Street ended mixed as cooler-than-expected inflation data was offset by persistent pressure from elevated US Treasury yields and rising oil prices.
The Dow Jones Industrial Average fell 0.86 percent, while the benchmark S&P 500 dipped 0.25 percent. The tech-heavy Nasdaq composite gained 0.24 percent.
Trade volume was light at 259.69 million shares worth 16.65 trillion won ($12.25 billion), with advancers outnumbering decliners 541 to 331.
Foreigners and individuals sold a net 1.43 trillion won and 547.26 billion, respectively, while institutions bought a net 334.32 billion won.
"US inflation data came in below market expectations, easing concerns over further tightening by the Federal Reserve. Investor sentiment also improved as strong earnings from Micron Technology coincided with an increase in South Korea's semiconductor exports," Lee Kyung-min, an analyst at Daishin Securities, said.
South Korea's exports soared 83.5 percent to a record $120.9 billion in September from a year earlier, driven by a surge in chip shipments
Market heavyweights ended higher.
Market bellwether Samsung Electronics gained 2.79 percent to 276,000 won, while chip giant SK hynix went up 3.21 percent to 1.83 million won.
SK Square, the parent company of SK hynix, went up 1.4 percent to 1.15 million won, while Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, increased 3.17 percent to 1.56 million won.
The Korean won was quoted at 1,358.4 won against the US dollar as of 3:30 p.m., down 5.6 won from the previous stock trading session's close.
Open Questions
- Will foreign investors return to buying South Korean equities?
