KOSPI nears 7,000 after 5-day winning streak

The KOSPI index is displayed in the dealing room of Hana Bank in Seoul, Friday. The benchmark KOSPI closed at 6,977.94, up 2.42 percent from the previous session. Yonhap

KOSPI capped a weeklong rally Friday, briefly reclaiming the 7,000 level for the first time in three weeks as foreign investors piled into semiconductor stocks amid stronger sentiment toward the memory chip sector and easing U.S. inflation.

The index nearly rose 25 percent from its July 30 low.

The benchmark KOSPI closed at 6,977.94, up 2.42 percent from the previous session. The index opened 2.68 percent higher and reclaimed the 7,000 level for the first time in three weeks before giving up some of its gains as investors took profits following a five-session winning streak.

Foreign investors purchased a net 3.03 trillion won ($2.13 billion) worth of shares, while institutional and retail investors sold a net 1.02 trillion won and 1.98 trillion won, respectively.

SK hynix rose 3.26 percent to close at 1,645,000 won, while Samsung Electronics gained 2.43 percent to finish at 274,500 won.

The gains came amid stronger sentiment across the memory chip sector after Sandisk revealed an upbeat long-term outlook at its investor day. The company said it is targeting revenue growth in the mid- to high-teens through 2030. It also pledged to return 100 percent of excess free cash flow to shareholders.

Adding to the positive tone, U.S. inflation showed further signs of easing in July, with the Producer Price Index rising 4.7 percent year-on-year, below the 4.9 percent forecast. Core PPI rose 4.2 percent, in line with expectations.

Shipbuilders including Hanwha Ocean and HD Korea Shipbuilding & Offshore Engineering rallied after the U.S. moved to allow foreign companies to build up to two naval vessels in their home countries.

Auto stocks also gained on reports that Hyundai Motor Group is reorganizing its robotics supply chain. LG Electronics traded higher as LG Group Chairman Koo Kwang-mo and Nvidia CEO Jensen Huang met again after two months to advance their partnership in physical AI.

The Kosdaq also extended its winning streak, rising 0.38 percent to close at 864.65.

The won-dollar exchange rate closed at 1,418.3 won per dollar, down 1.1 won from the previous session.