The South Korea stock market rebounded strongly as renewed hopes for another US rate cut lifted investor sentiment. Moreover, foreign and institutional investors led the rally, buying large amounts of shares across major sectors. Consequently, the local currency also gained significant strength against the US dollar.
The Korea Composite Stock Price Index jumped more than 1 percent, ending its recent losing streak. In addition, the market posted its sharpest gain in several sessions, proving renewed optimism among traders. Trading volume reached billions in value, and gainers outnumbered decliners by a wide margin.
Foreign investors bought hundreds of billions of won in shares, and institutions joined the positive trend. However, retail investors sold large volumes, taking profits after recent losses. As a result, the South Korea stock market showed stronger reliance on foreign participation.
Recent US inflation data met market expectations and encouraged hopes of a dovish Fed stance. Therefore, investors expected another possible rate cut during the upcoming meeting. Wall Street also rebounded, which added further momentum to the rally in Seoul.
Large-cap stocks ended higher and provided solid support to the broader index. For instance, technology shares performed particularly well. Samsung Electronics advanced modestly, while SK hynix surged more than 3 percent. Furthermore, the gains underscored growing optimism in the semiconductor sector.
Shipbuilding shares also added strength to the session. HD Korea Shipbuilding & Offshore Engineering posted gains, and Samsung Heavy Industries climbed as well. Consequently, investors viewed these moves as signs of stability in heavy industries.
Meanwhile, retailers and hotels benefited from a new visa-free program for Chinese tour groups. Lotte Shopping, Shinsegae, Hotel Shilla, and Hanatour Service all gained. As a result, the travel-related sector delivered an additional boost to the market.
Technology platforms also made headlines during the rally. Naver soared more than 7 percent after announcing its acquisition of Dunamu, the operator of South Korea’s largest crypto exchange. Furthermore, Kakao added nearly 2 percent, recovering from recent declines linked to its messenger service update.
The Korean won closed significantly stronger against the greenback. Therefore, the stronger currency added to positive market momentum. Overall, the South Korea stock market regained ground through widespread buying and renewed investor confidence.
