Seoul shares open sharply higher on US gains amid eased inflation woes

Korean shares surged to a two-day high on Friday, propelled by strong gains in key semiconductor firms, mirroring an earlier surge in U.S. equities. The benchmark KOSPI index climbed 2.7%, or 182.33 points, to close at 6,995.67, buoyed by a robust performance in the U.S. market. The S&P 500 surged 0.7%, while the Dow Jones Industrial Average and Nasdaq Composite each gained 0.1% and 0.8%, respectively.

The U.S. stock market's ascent was fueled by a decline in oil prices, which had been pressuring share prices, and easing inflation concerns. Composite wholesale inflation in the U.S. decelerated in July, as energy and food costs retreated, providing the Federal Reserve with a softer backdrop for potential rate hikes. The latest economic data showed less-than-anticipated job growth, further dampening expectations of aggressive monetary tightening.

In Seoul, major Korean corporations led the market rally. Samsung Electronics, a flagship company, edged up 0.93%, while its semiconductor peer, SK hynix, surged 5.34%. SK Square, the parent entity of SK hynix, gained 1.61%, and Samsung Electro-Mechanics, an electronic components subsidiary of Samsung Electronics, increased 2.16%. The Korean won traded at 1,418.8 per U.S. dollar.