In a curious turn of events, South Korean stocks soared to a 22-month high on Wednesday, echoing Wall Street’s overnight rally fueled by tech giants, while the local currency took a downward turn against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) climbed 0.44 percent to close at 2,693.57, its highest level since April 2022. Trade volume was decent at 491 million shares valued at 10.7 trillion won (US$8.14 billion), with more winners than losers.
Foreign investors played a pivotal role, snapping up a net 334 billion won worth of shares, while institutions and retail investors offloaded their holdings.
Meanwhile, Wall Street enjoyed a robust session, buoyed by strong performances from tech behemoths like Nvidia and Oracle, despite the release of higher-than-expected February consumer price data. The Dow Jones Industrial Average rose 0.61 percent, the S&P 500 gained 1.12 percent, and the Nasdaq Composite added 1.54 percent.
“Despite the higher-than-expected U.S. inflation data, Wall Street was fueled by the continued forecast of a rate cut by the Fed in June and a rebound of artificial intelligence-related stocks,” explained Han Ji-young, an analyst at Kiwoom Securities.
Back in Seoul, tech and financial stocks led the charge, with Samsung Electronics gaining 1.09 percent and leading banking firm KB Financial surging 5.87 percent.
Automobile and telecom shares also saw strong demand, with Hyundai Motor climbing 2.90 percent and SK Telecom adding 0.95 percent.
However, battery-related stocks took a breather, with LG Energy Solution slipping 0.24 percent and POSCO Future M falling 0.45 percent, as investors locked in profits from the previous session’s gains.
On the currency front, the South Korean won ended at 1,314.50 won against the greenback, down 3.50 won from the previous close.
Bond prices moved in the opposite direction, with yields on three-year Treasurys falling 2.2 basis points to 3.251 percent, and the benchmark five-year government bond yields dropping 1.2 basis points to 3.272 percent.
While South Korean stocks soared to new heights, the currency’s decline against the dollar serves as a reminder that the markets can be a tale of two halves, with winners and losers emerging from every rally.
(Source: Yonhap News Agency)
