KOSPI surges past 4,000 for first time on US-China trade deal optimism
Seoul shares soared Monday, with the benchmark Korea Composite Stock Price Index (KOSPI) surpassing the 4,000 mark for the first time, driven by optimism over a comprehensive U.S.-China trade deal and strong gains in technology stocks.
The Korean won also strengthened against the U.S. dollar, News.Az reports, citing Yonhap.
The KOSPI jumped 101.24 points, or 2.57 percent, to close at 4,042.83. Trade volume was robust, with 513.48 million shares worth 20.04 trillion won (US$14 billion) changing hands, as gainers outnumbered decliners 561 to 319.
Overnight gains on Wall Street further buoyed sentiment, with the Dow Jones Industrial Average up 1.01 percent and the tech-heavy Nasdaq climbing 1.15 percent on Friday (U.S. time).
Institutional and foreign investors were major buyers, purchasing a net 234.07 billion won and 645.54 billion won worth of shares, respectively, while retail investors sold a net 794.51 billion won.
“The rally came largely on the back of optimism over a possible trade deal between the world’s two largest economies and rising appetite for risk assets amid expectations of further U.S. rate cuts,” said Lee Jae-won, an analyst at Shinhan Securities Co.
U.S. President Donald Trump said Friday that a trade deal with China is “pretty close to being finalized,” adding that he is “ready” if Beijing is ready to complete the framework agreement reached in July.
Most large-cap stocks advanced. Market bellwether Samsung Electronics rose 3.24 percent to 102,000 won, closing above 100,000 won per share for the first time. Chipmaker SK hynix jumped 4.9 percent to 535,000 won, while top carmaker Hyundai Motor gained 0.79 percent to 255,500 won. Leading shipbuilder HD Hyundai surged 17.02 percent to 212,500 won.
Among decliners, Korea Electric Power Corp. slipped 0.69 percent to 43,000 won, and POSCO Holdings fell 1.69 percent to 320,000 won.
The Korean won closed at 1,431.70 per U.S. dollar at 3:30 p.m., up 5.40 won from the previous session. Bond prices ended lower, with the yield on three-year Treasurys rising 2.9 basis points to 2.620 percent and the five-year government bond yield up 4 basis points to 2.756 percent.
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