KOSPI edges higher as battery, auto gains power market
Summary
Korean stocks closed higher Monday in Seoul as bargain hunting in secondary battery and auto shares offset losses in semiconductor heavyweights. The KOSPI rose 1.76 percent to 5,768.01 after opening more than 3 percent lower. Persistent doubts about the profitability of AI infrastructure investments limited the rebound, while the KOSDAQ gained 1.78 percent.
Key Facts
- Foreign and retail investors were net sellers of 37.9 billion won and 1.09 trillion won, respectively, while institutional investors bought 574.7 billion won.
- Samsung SDI, LG Energy Solution and POSCO Future M rose 11.7 percent, 7.2 percent and 10.9 percent, respectively, after reports that Chinese energy storage system companies were withdrawing from the U.S. market.
- Hyundai Motor, Kia and Hyundai Mobis gained 4.49 percent, 5.26 percent and 3.69 percent, respectively.
- The KOSPI had fallen 17.11 percent as of Friday, its steepest decline among major stock markets that month.
- The won-dollar exchange rate closed at 1,330.30 won per dollar, down 1.1 won from the previous session and its lowest level in just over two years.
Won-dollar exchange rate hits 2-year low
The KOSPI and Kosdaq indexes are displayed on the board in the dealing room of Hana Bank in Seoul, Monday. The benchmark KOSPI closed at 5,768.01, up 1.76 percent from the previous session, while Kosdaq closed at 808.89, up 1.78 percent. Yonhap
Korean stocks reversed steep early losses to close slightly higher Monday, as bargain hunting in secondary battery and auto shares offset weakness in semiconductor heavyweights.
KOSPI closed at 5,768.01, up 1.76 percent. The benchmark index pared its losses after opening more than 3 percent lower. Stocks attempted to rebound as bargain hunters stepped in, but persistent doubts over the profitability of AI infrastructure investments limited gains.
Foreign and retail investors were net sellers of 37.9 billion won ($28.47 million) and 1.09 trillion won, respectively, while institutional investors were net buyers of 574.7 billion won.
Samsung Electronics gained 1.16 percent to close at 218,000 won, while SK hynix added 0.39 percent to 1,277,000 won.
The gains came amid Friday's sell-off in artificial intelligence-related stocks on Wall Street, as credit concerns surrounding CoreWeave resurfaced.
Yet bargain hunting shifted to other sectors.
Secondary battery stocks posted strong gains, buoyed by reports that Chinese energy storage system companies were withdrawing from the U.S. market. Samsung SDI, LG Energy Solution and POSCO Future M rallied 11.7 percent, 7.2 percent and 10.9 percent, respectively.
Automakers also advanced on bargain hunting, with Hyundai Motor, Kia and Hyundai Mobis gaining 4.49 percent, 5.26 percent and 3.69 percent, respectively.
KOSPI recorded the steepest decline among major stock markets this month, plunging 17.11 percent as of Friday. The index even underperformed Indonesia's stock market, which fell 14.59 percent amid MSCI's consideration of a proposal to downgrade Indonesia from Emerging Market to Standalone Market status.
The tech-heavy Kosdaq gained 1.78 percent to close at 808.89.
The won-dollar exchange rate closed at 1330.30 won per dollar, down 1.1 won from the previous session. This marked the lowest level in just over two years, since Oct. 2, 2024, when the won-dollar exchange rate closed at 1,319.3 won during regular trading hours.
Steady dollar selling by semiconductor exporters has helped offset upward pressure on the won-dollar exchange rate from a stronger U.S. dollar, according to economists.
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