Kospi Jumps 2.42% to Close Near 7,000; Kosdaq Extends Rally

Sentiment Rebounds as U.S. Tech Stocks Advance

Foreign Investors Snap Up 3.038 Trillion Won of Kospi Shares

South Korea’s Kospi moved back toward the 7,000 level as gains in U.S. technology stocks helped revive investor sentiment. The Kosdaq index extended its advance to a fifth straight session.

On Aug. 14, the Kospi closed at 6,977.94, up 164.6 points, or 2.42%, from the previous session. The benchmark briefly rose above 7,000 during trading for the first time in 15 trading days, before giving up part of its gains on profit-taking.

Easing inflation pressure in the U.S. and a decline in international oil prices fueled a broad rally in technology shares, helping lift South Korean stocks.

Concerns over additional rate hikes also eased. CME FedWatch showed the federal funds futures market raised the probability of the Federal Reserve holding its benchmark rate steady in September to 67.6% after the producer price index report was released on Aug. 14, up from 59.4% a day earlier.

In the Kospi market, foreign investors were net buyers of 3.038 trillion won. Institutional and retail investors were net sellers of 1.027 trillion won and 1.985 trillion won, respectively.

Most large-cap Kospi stocks advanced. Samsung Electronics rose 2.43% and SK Hynix gained 3.26%. Samsung Electronics preferred shares climbed 4.15%, while SK Square added 3.31% and Samsung Electro-Mechanics rose 3.66%.

Hyundai Motor Group shares rebounded across the board as bargain buying emerged and the physical artificial intelligence theme regained attention. Hyundai Motor jumped 8.24%, Kia rose 3.13%, Hyundai Mobis gained 7.05%, and Hyundai AutoEver climbed 9.02%. Hyundai Motor 2nd Preferred B and Hyundai Motor Preferred advanced 5.71% and 5.24%, respectively.

The Kosdaq rose for a fifth straight trading day, ending at 864.65, up 0.38% from the previous session. On the Kosdaq market, retail investors were net buyers of 315 billion won. Institutions and foreign investors were net sellers of 253 billion won and 66 billion won, respectively.

Curiox Biosystems surged by the daily limit after winning an order from a global pharmaceutical company. Robot-related stocks including Clobot, Hyundai Movex, Robotis and Yuil Robotics also advanced.

The won strengthened against the dollar. As of 3:30 p.m. in Seoul, the currency traded at 1,418.3 won per dollar, up 1.1 won from the previous session.

Noh Jeong-dong, Hankyung.com reporter, dong2@hankyung.com