Seoul: South Korean stocks soared to a new all-time high on Thursday, buoyed by significant rallies in technology and automobile sectors, amid growing optimism surrounding a potential trade deal with the United States. Concurrently, the Korean won appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) surged by 91.09 points, or 2.49 percent, closing at 3,748.37. This marks the first occasion the index has surpassed the 3,700 threshold. The trading volume was moderate with 487.77 million shares exchanged, valued at 17.37 trillion won (approximately US$12.2 billion), with gainers outpacing decliners by 492 to 387.
Institutional and foreign investors emerged as net buyers, acquiring shares worth 741.76 billion won and 652.76 billion won respectively, while retail investors sold a net 1.39 trillion won. The Seoul stock market's upward trend continued for the second consecutive day following positive remarks from U.S. Treasury Secretary Scott Bessent about the trade negotiations between Seoul and Washington, alongside optimism regarding investments in artificial intelligence (AI).
Bessent indicated that the U.S. is nearing the completion of trade negotiations with South Korea, as both nations are working to finalize details of Korea's $350 billion investment commitment. He also expressed confidence that there is no bubble in AI investment, which further propelled technology stocks in both the U.S. and Korea, according to Lee Jae-won, an analyst at Shinhan Securities Co.
Additionally, Seoul's National Security Adviser Wi Sung-lac expressed hope for a compromise in the ongoing trade discussions between Seoul and Washington. In the stock market, technology and automobile shares were at the forefront of the gains.
Samsung Electronics, a market leader, saw its shares rise by 2.84 percent to reach a record high of 97,700 won. SK hynix, the second-largest chipmaker, experienced a 7.1 percent increase, closing at 452,500 won. Hyundai Motor, the top carmaker, surged by 8.28 percent to 242,000 won, while its affiliate Kia saw a 7.23 percent rise, ending at 111,300 won, fueled by optimism over the tariff discussions between Seoul and Washington.
Conversely, some stocks did decline; Korea Gas Corp. fell by 0.12 percent to 40,350 won, and Jeju Air, a leading budget carrier, decreased by 0.81 percent to 6,150 won. Hanwha Aerospace Industries and Korea Aerospace Industries also saw declines, dropping by 1.89 percent to 936,000 won and 1.3 percent to 98,700 won, respectively.
The Korean won was quoted at 1,417.90 against the U.S. dollar as of 3:30 p.m., representing an increase of 3.4 won from the previous session's close. In the bond market, prices fell, causing yields to rise, with the three-year Treasurys yield increasing by 4.9 basis points to 2.569 percent, and the five-year government bonds yield climbing by 4.4 basis points to 2.684 percent.