Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
KOSPI snaps back to 8,000 as Samsung, SK hynix rally
The won-dollar exchange rate and KOSPI index are displayed on a board in the dealing room of Hana Bank in Seoul, Friday. The won-dollar exchange rate closed at 1,525.6, down 30.2 won from the previous session, while the benchmark KOSPI ended 5.76 percent higher at 8,088.34. Yonhap
By Lee Yeon-woo
Won-dollar rate ends in 1,520 range for 1st time in 2 weeks
Korean stocks rebounded sharply from the previous day's sell-off on Friday, with the benchmark KOSPI reclaiming the 8,000 level as investors piled into large-cap chip shares.
According to the Korea Exchange, KOSPI closed at 8,088.34, up 5.76 percent from the previous session. The index had retreated to the 7,300 level in early trading, but sharp gains in Samsung Electronics and SK hynix helped lift the market, triggering a buy-side sidecar.
Samsung Electronics closed at 309,500 won, up 8.22 percent from the previous session. SK hynix closed at 2,425,000 won, climbing 10.88 percent.
A renewed sell-off in U.S. chip stocks overnight initially weighed on investor sentiment, though bargain hunters appeared to step in after the sharp decline. Sentiment was also supported by Kioxia's rebound in Japan, where the shares turned higher after opening sharply lower, helping lift the sector.
Institutional investors drove the advance on the main KOSPI market with net purchases of 4.46 trillion won. Foreign investors sold a net 2.19 trillion won, while retail investors were net sellers of 2.31 trillion won.
The secondary Kosdaq closed at 868.41, up 0.19 percent from the previous session. The index recovered some ground after sliding nearly 5 percent, though its rebound lagged behind KOSPI.
The won strengthened sharply against the U.S. dollar, with the exchange rate closing in the 1,520 range for the first time in 10 trading days. The rate fell by more than 30 won, marking its biggest one-day drop since a 33-won decline in early April.
The won-dollar exchange rate closed the daytime session at 1,525.6, down 30.2 won from the previous trading day. It opened lower at 1,544.50 and extended its decline to as low as 1,525.1 during the session.
The won's strength came as the dollar weakened after expectations for a Federal Reserve rate hike faded. U.S. nonfarm payrolls, announced overnight, fell well short of market expectations, fueling concerns over a slowdown in hiring.
The exchange rate also came under pressure as the yen strengthened on suspected intervention by authorities, with the Japanese currency having recently moved in tandem with the won.
Kim Jin-wook, a researcher at Citi, said in a report that the won-dollar exchange rate is likely to fall toward the 1,500 level within the next three months. He noted that the National Pension Service has raised its foreign-exchange hedge ratio through forward dollar sales, effectively helping stabilize the exchange rate.