Seoul: South Korea's stock market breached the 2,900-point mark for the first time in more than three years shortly after opening on Wednesday, fueled by a surge in foreign buying and optimism regarding a trade agreement between the world's two largest economies.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) exceeded the 2,900 threshold approximately 30 minutes after the market opened. This milestone marks the first instance since January 2022 that the KOSPI has reached such a level. As of 9:50 a.m., the index had gained 29.51 points, or 1.03 percent, bringing it to 2,901.36.
Foreign investors have maintained their purchasing momentum for local shares for the sixth consecutive session, acquiring 99.6 billion won (approximately US$73.1 million). Institutional investors also contributed to the buying spree, with purchases amounting to 47.2 billion won, while retail investors opted to sell 135 billion won for profit-taking.
Overnight, Wall Street experienced gains as U.S. officials indicated progress in trade negotiations between the United States and China. U.S. Commerce Secretary Howard Lutnick described the talks in London as having gone "really, really well," noting that both parties had reached an agreement on a potential trade framework to address ongoing trade issues, including those related to rare earths. Consequently, the Dow Jones Industrial Average rose by 0.25 percent, the S and P 500 increased by 0.55 percent, and the tech-heavy Nasdaq composite advanced by 0.63 percent.
In Seoul, major technology companies experienced notable gains. Samsung Electronics saw a 1.01 percent increase, while its chipmaking competitor SK hynix surged by 3.9 percent. Leading automaker Hyundai Motor rose by 1.78 percent, with its affiliate Kia climbing 2.01 percent. Additionally, Doosan Enerbility, a significant nuclear power plant manufacturer, skyrocketed by 5.62 percent, and Kakao, the country's dominant mobile messenger operator, advanced by 2.4 percent. Samsung Life Insurance also experienced a surge, rising by 4.99 percent.
Conversely, some large-cap defense and shipbuilding stocks experienced declines as investors sought profits following a rally on the previous day. Defense giant Hanwha Aerospace fell by 1.92 percent, and leading shipbuilder HD Hyundai Heavy decreased by 0.82 percent. Financial shares were also in negative territory, with KB Financial losing 2.25 percent and Shinhan Financial dipping by 1.81 percent.
The local currency was trading at 1,363.2 won against the U.S. dollar at 9:50 a.m., reflecting a 1.1 won increase from the previous session.