South Korean shares set to snap 7-week losing streak on AI optimism
SEOUL: Round-up of South Korean financial markets: South Korean shares looked set to snap a seven-week decline on Friday, rising to their highest level in three weeks as chipmakers gained on AI optimism. The benchmark KOSPI was up 55.55 points, or 0.82%, at 6,868.89 as of 0132 GMT, after rising as much as 2.9% earlier in the session. The index cut gains on caution ahead of a public holiday on…
South Korean shares appear poised to end a seven-week losing streak as optimism around artificial intelligence (AI) propels the market to three-week highs. The KOSPI index, a key benchmark for the country's financial markets, surged 55.55 points, or 0.82%, to 6,868.89 by 0132 GMT on Friday. Earlier, the index had climbed as much as 2.9%. Despite the gains, traders will likely remain cautious as a public holiday approaches on Monday.
This marks the tech-heavy index's fifth consecutive day of gains, with the KOSPI up 9.4% during this period. The sector had previously suffered a 31% drop over the preceding seven weeks. Market volatility has eased recently, with the volatility index standing at 56 on Friday, down from a record high of 98 in late June.
The S&P 500 closed at a record high on Thursday, propelled by strong performances in technology stocks. This followed a period of tame producer price inflation, which bolstered hopes that the Federal Reserve would refrain from raising interest rates at its September meeting.
Among the KOSPI's top performers, Samsung Electronics saw a slight decline of 0.37%, following a rise of more than 2% earlier in the day. SK Hynix, another key player, gained 3.01%. Other notable gains included LG Energy Solution, which dropped 1.37%, and Hyundai Motor and Kia Corp, which rose 5.73% and 1.97%, respectively. POSCO Holdings experienced a 1.08% increase, while Samsung BioLogics fell by 1.09%.
Out of the 903 traded issues, 453 shares advanced, while 420 declined. Foreign investors bought shares worth 780.2 billion won ($550.81 million) during the session. The won was traded at 1,416.3 per dollar on the onshore settlement platform, marking a 0.16% increase from its previous close at 1,418.6.
In money and debt markets, September futures on three-year treasury bonds rose by 0.04 point to 103.33. The yield on the most liquid three-year Korean treasury bond fell by 0.6 basis points to 3.774%, while the benchmark 10-year yield declined by 1.1 basis points to 4.282%.
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