South Korean shares rise to near 11-month high on post-election optimism
- The benchmark KOSPI was up 49.66 points, or 1.79%, at 2,820.50
SEOUL: Round-up of South Korean financial markets:
South Korean shares climbed on Thursday to their highest levels in nearly 11 months, extending a post-election rally, driven by steady foreign capital inflows on expectations for prompt economic stimulus and structural market reforms.
The won strengthened near an eight-month high, while the benchmark bond yield fell.
The benchmark KOSPI was up 49.66 points, or 1.79%, at 2,820.50, as of 0116 GMT, touching its highest level since July 18, 2024.
The index closed 2.7% higher on Wednesday after Lee Jae-myung officially took office as president.
Lee has pledged to bring corporate reform measures to boost the domestic stock market, raise investment in artificial intelligence, and revive an economy reeling from slowing growth with stimulus policies.
Foreigners were net buyers of shares worth 412.5 billion won ($303.90 million) on Thursday, after buying more than 1 trillion won in the previous session, the biggest in nearly 10 months.
South Korea’s economy in the first quarter contracted by 0.2% from the previous quarter, according to revised data, confirming the initial estimate and signalling continued economic challenges.
Among index heavyweights, chipmaker Samsung Electronics rose 2.77%, while peer SK Hynix gained 5.63%. Battery maker LG Energy Solution climbed 1.56%.
Shares of Hyundai Motor and sister automaker Kia Corp were up 3.28% and 3.46%, respectively. Steelmaker POSCO Holdings added 4.89% while drugmaker Samsung BioLogics rose 0.29%.
Of the total 934 traded issues, 602 shares advanced, while 290 declined.
The won was quoted at 1,356.3 per dollar on the onshore settlement platform, 0.58% higher than its previous close and the highest since October 15, 2024.
In money and debt markets, June futures on three-year treasury bonds gained 0.08 point to 107.31.
The most liquid three-year Korean treasury bond yield fell by 1.6 basis points to 2.398%, while the benchmark 10-year yield fell 3.9 basis points to 2.857%.