Korean stocks rebound as US rate concerns ease
Summary
Korean stocks rebounded Friday, with the KOSPI reclaiming the 6,600 level and closing higher in Seoul as easing U.S. rate concerns lifted sentiment. Foreign and institutional investors turned net buyers after five straight sessions of selling, helping drive the rally. The Kosdaq also ended a four-session losing streak, while the won strengthened against the dollar.
Key Facts
- The KOSPI opened 1.14 percent higher at 6,654.36 and finished at 6,687.21, up 107.73 points or 1.64 percent.
- Foreign investors bought a net 479.3 billion won, and institutional investors bought a net 1.67 trillion won.
- The Kosdaq closed 23.29 points, or 2.95 percent, higher at 813.50 after opening at 802.32.
- Samsung Electronics rose 2.40 percent and SK hynix gained 3.32 percent as U.S. chipmakers also advanced.
- The won closed onshore trading at 1,350.4 per dollar, up 8.9 won from the previous session.
The KOSPI, Kosdaq and won-dollar exchange rate are displayed on a market board at Hana Bank’s dealing room in Seoul, Friday. KOSPI closed at 6,687.21, up 107.73 points, or 1.64 percent, from the previous session, while Kosdaq rose 23.29 points, or 2.95 percent, to finish at 813.50. Yonhap
Korean stocks climbed Friday, with the benchmark KOSPI reclaiming the 6,600 level as a rally on Wall Street and a pullback in U.S. Treasury yields improved investor sentiment.
Foreign and institutional investors turned net buyers after five consecutive sessions of selling, with net purchases of 479.3 billion won ($355 million) and 1.67 trillion won, respectively, providing a boost to the index.
KOSPI started the session 1.14 percent higher at 6,654.36, up 74.88 points from the previous close. The index remained in positive territory throughout the session and ended 107.73 points, or 1.64 percent, higher at 6,687.21.
U.S. stocks advanced across the board overnight as Treasury yields steadied. The Dow Jones Industrial Average rose 1.18 percent, while the other two major indexes also posted gains.
The rally was partly fueled by comments from Federal Reserve Gov. Christopher Waller, who signaled he could support keeping interest rates unchanged at this month’s Federal Open Market Committee meeting, if incoming inflation data confirm that price pressures are continuing to ease. His remarks helped ease concerns about another rate hike.
Major U.S. chipmakers also gained amid the upbeat market sentiment, with Nvidia rising 1.80 percent and Micron Technology advancing 0.22 percent. The gains helped bolster Korean semiconductor stocks, with Samsung Electronics and SK hynix closing 2.40 percent and 3.32 percent higher, respectively.
“Concerns about the stock market stemming from a sharp rise in interest rates have eased somewhat following Waller’s comments,” said Han Ji-young, an analyst at Kiwoom Securities. “What matters now is whether further sharp increases in borrowing costs can be kept in check.”
The tech-heavy Kosdaq followed suit, ending a four-session losing streak.
The secondary index opened 1.53 percent higher at 802.32 and extended its gains to close 23.29 points, or 2.95 percent, higher at 813.50.
The won also strengthened, gaining 8.9 won to close onshore trading at 1,350.4 per dollar in the Seoul foreign exchange market.
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