Seoul stocks extend gains late Fri. morning on bargain hunting

Seoul stocks continued to rise late on Friday as bargain hunters targeted large-cap technology companies. The KOSPI index rose 154.88 points, or 2.79%, to reach 5,709.1 by 11:20 a.m. The benchmark index had opened higher following a sharp drop of over 7% the previous day due to worries over the durability of the AI sector. Meanwhile, major U.S. stock indexes ended the day higher, with Wall Street stocks rebounding despite a decline in AI-related shares.

Investors remained vigilant, closely monitoring the latest producer price data, which recorded the biggest gain in nearly 4.5 years in September. The U.S. Producer Price Index surged 1.3% last month, primarily driven by rising energy costs due to the ongoing conflict in the Middle East. This development raised hopes that the Federal Reserve may maintain a more aggressive rate policy.

In Seoul, chip manufacturing giant Samsung Electronics and SK hynix both posted gains of over 2%. Additionally, battery producer LG Energy Solution saw a rise of 0.99%, while auto industry leader Hyundai Motor surged 6.77%, and defense firm Hanwha Aerospace jumped 9.1%.