Seoul shares open sharply higher on U.S. gains amid eased inflation woes

On Friday, South Korean shares experienced a sharp rise at the opening bell of the trading day, buoyed by gains in US markets and a decrease in inflation concerns. The Korea Composite Stock Price Index (KOSPI) initially surged by 2.7 percent, reaching 6,901.29 points by 11:20 a.m. local time. This marked a significant increase from the previous session, with the index briefly touching the 7,000 mark in early trading, reflecting a 2.9 percent rise.

Foreign investors played a crucial role in the market rally, purchasing nearly 1.01 trillion won (USD 714 million) worth of shares. This buying spree effectively countered a net loss of 978.9 billion won due to selling by retail and institutional investors. The U.S. stock market also contributed to the positive sentiment, with the S&P 500 climbing 0.7 percent, the Dow Jones Industrial Average up 0.1 percent, and the tech-focused Nasdaq Composite gaining 0.8 percent.

Among Korean blue-chip stocks, Samsung Electronics and SK hynix were notable gainers. Samsung Electronics saw a 0.56 percent increase, while SK hynix rose by 3.2 percent. Despite these positive moves, large-cap technology stocks saw continued selling pressure from investors. The Korean won strengthened against the US dollar, trading at 1,414.1 won per dollar, marking a 4.5 won increase from the prior session's close.