Seoul: South Korean stocks closed nearly 1 percent higher Wednesday on reviving rate cut hopes and better-than-anticipated September export data. The local currency edged down against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 31.23 points, or 0.91 percent, to close at 3,455.83, rebounding from a 0.19 percent drop in the previous session. Trade volume was moderate at 488.7 million shares worth 12.2 trillion won (US$8.69 billion), with losers outnumbering gainers 476 to 385.
Foreign investors purchased a net 845.9 billion won worth of shares, while institutions acquired a net 220 billion won. In contrast, individual investors offloaded a net 1.1 trillion won. Analysts indicated that concerns over an economic slowdown triggered by a potential U.S. government shutdown rekindled investor hopes for another rate cut by the Federal Reserve.
Furthermore, earlier data revealed that South Korea’s exports increased by 12.7 percent on-year to a record US$65.95 billion in September, boosting interest in risky assets. “Foreign investors remained net buyers on the KOSPI for three sessions in a row,” commented Lee Jae-won, an analyst from Shinhan Securities Co., adding that semiconductors, energy, and shipbuilding shares contributed to the index’s rise.
Key players in the tech sector saw gains, with Samsung Electronics rising 2.5 percent to 86,000 won and SK hynix advancing 3.6 percent to 360,000 won. These increases are linked to anticipated artificial intelligence (AI) deals involving both companies, expected to be announced during a meeting between President Lee Jae Myung and OpenAI CEO Sam Altman later in the day.
In the energy sector, Doosan Enerbility climbed 3.03 percent to 64,600 won, and Samsung C and T increased 2.11 percent to 188,500 won. Among shipbuilders, HD Korea Shipbuilding and Offshore Engineering rose 0.85 percent to 414,500 won, while Hanwha Ocean edged up 0.09 percent to 110,400 won.
Food manufacturers also performed well, with Nongshim jumping 3.24 percent to 445,500 won and Samyang Foods gaining 1.9 percent to 1.5 million won. Conversely, the defense sector saw declines, with Hanwha Aerospace falling 0.72 percent to 1.09 million won, and Naver, a leading internet company, tumbling 5.21 percent to 254,500 won.
The local currency was quoted at 1,403.2 won against the greenback as of 3:30 p.m., down 0.3 won from the previous session’s close. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 1.4 basis points to 2.596 percent, and the return on benchmark five-year government bonds climbed 1.4 basis points to 2.748 percent.