South Korean Shares Surge for Fifth Straight Session on Chipmaker Strength
KOSPI gains 2.42 percent as foreign investors net-buy shares following favorable U.S. inflation data.
Quick Look
South Korean shares ended sharply higher for the fifth consecutive session Friday, driven by foreign buying of major chipmakers like Samsung Electronics and SK hynix, following positive U.S. inflation data.
AI-generated summary
Why It Matters
U.S. stocks advanced overnight on better-than-expected July inflation data, easing investor concerns over potential Federal Reserve interest rate hikes.
SEOUL, Aug. 14 (Yonhap) -- South Korean shares ended sharply higher for the fifth straight session Friday as investors snapped up shares of major chipmakers. The Korean won rose against the U.S. dollar.
After opening 2.7 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) trimmed earlier gains to end up 164.60 points, or 2.42 percent, at 6,977.94.
Trade volume was moderate at 416 million shares worth 26.73 trillion won (US$18.8 billion) with gainers outnumbering losers 675 to 204.
Foreigners bought a net 3.04 trillion won worth of shares, offsetting 3 trillion won in combined net selling by institutions and individuals.
Overnight, U.S. stocks advanced on better-than-expected inflation data in July. The Dow Jones Industrial Average rose 0.13 percent, and the tech-heavy Nasdaq Composite climbed 0.81 percent.
Investor concerns appeared to ease as expectations grew that the U.S. Federal Reserve could delay interest-rate hikes if inflation remains at current levels, analysts said.
In Seoul, technology stocks led the advance.
Market bellwether Samsung Electronics rose 2.4 percent to 274,500 won, while rival chipmaker SK hynix gained 3.26 percent to 1.65 million won.
Top carmaker Hyundai Motor jumped 8.2 percent to 453,000 won and shipbuilder Hanwha Ocean rose 5.6 percent to 95,800 won.
Among decliners, defense giant Hanwha Aerospace fell 2.1 percent to 1.16 million won and LIG Defense & Aerospace declined 2.6 percent to 815,000 won.
The Korean won was quoted at 1,418.3 won against the U.S. dollar at 3:30 p.m., up 1.1 won from the close of stock trading the day before.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.5 basis points to 3.796 percent, while the return on the benchmark five-year government bonds climbed 3.1 basis points to 4.047 percent.
Open Questions
- Will foreign net-buying continue next week?
- How will upcoming economic indicators affect bond yields?
