Federal Reserve

South Korean stocks surpassed the landmark 5,500-point mark for the first time in history Thursday, boosted by sharp gains in blue-chip tech shares. The local currency gained ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) surged 167.78 points, or 3.13 percent, to close at an all-time high of 5,522.27.

This marked the first time the KOSPI breached the 5,500-point threshold.

Trade volume was heavy at 739.2 million shares worth 31.8 trillion won (US$22 billion), with winners outnumbering losers 616 to 272.

Foreigners and institutions scooped up a net 3 trillion won and 1.37 trillion won, respectively, while retail investors sold a combined 4.45 trillion won for profit-taking.

“The KOSPI’s feat came despite the mixed performance of global stock markets amid uncertainties deriving from the planned replacement of the Federal Reserve chief and the release of the U.S. jobs report,” Lee Kyoung-min, an analyst at Daishin Securities, said.

“The KOSPI digested the uncertainties to move upwards based on the fundamentals of the market, with big-cap shares gaining ground,” he added.

Overnight, major U.S. indexes closed slightly lower as investors showed a mixed reaction to the stronger-than-expected U.S. jobs report, which raised hopes the U.S. economy would remain solid, and at the same time, concerns the Federal Reserve may keep its interest rates unchanged.

Lee said semiconductor and financial shares led Thursday’s rally, with secondary battery and the food and beverage sectors, which had been lagging behind recently, also showing a strong performance.

Semiconductor heavyweight Samsung Electronics shot up 6.44 percent to 178,600 won and its rival SK hynix soared 3.26 percent to 888,000 won. Hanmi Semiconductor skyrocketed 9.97 percent to 209,500 won.

Leading battery maker LG Energy Solution surged 4.59 percent to 410,000 won, and artificial intelligence investment firm SK Square jumped 7.14 percent to 570,000 won.

KB Financial climbed 2.43 percent to 168,500 won and Shinhan Financial escalated 5.05 percent to 106,000 won.

But automakers were mixed, with Hyundai Motor losing 0.59 percent to 506,000 won, while Kia rose 2.78 percent to 166,300 won.

Home appliances maker LG Electronics tumbled 5.08 percent to 121,400 won following a rally the previous day.

The Korean won was quoted at 1,440.2 won against the U.S. dollar at 3:30 p.m., up 9.9 won from the previous session.

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South Korean stocks shot up by the most in six years Tuesday, rebounding from the previous session’s deep trough, as investors brushed off concerns over the newly nominated Federal Reserve chair and went bargain hunting. The Korean won also rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 338.41 points, or 6.84 percent, to close at a new high of 5,288.08, a sharp upturn from the previous day’s plummet.

It marked the steepest daily increase since March 24, 2020, when the index rose by 8.6 percent, according to data provided by the Korea Exchange (KRX), South Korea’s main bourse operator.

Trade volume was heavy at 666.5 million shares worth 29.3 trillion won (US$20.3 billion). Winners outnumbered losers 825 to 75.

Strong buying demand triggered the KRX to temporarily suspend stock purchases in early trading.

The temporary halt in trading, also known as a “sidecar” in Korea, came a day after the bourse operator issued a sidecar for sell orders, with the KOSPI plunging by more than 5 percent.

The last time when the KRX consecutively issued a sell-side and a buy-side sidecar was on April 7 and 8, following U.S. President Donald Trump‘s announcement of sweeping tariffs, Lee Kyoung-min, an analyst from Daishin Securities, said.

“As there was no change in the market’s fundamentals, the benchmark index recovered on bargain hunting,” he said.

On a similar note, JP Morgan raised its target for the KOSPI to a range of 6,000 to 7,500 in a report released Tuesday, citing strong delivery in other sectors, such as defense and shipbuilding.

Foreign and Institutional investors turned net buyers, scooping up 703.3 billion won and 2.2 trillion won of equities, respectively. Retail investors sold off a net 2.9 trillion won.

Large-cap shares ended higher across the board.

Market top-cap Samsung Electronics soared 11.37 percent to 167,500 won, while its rival SK hynix advanced 9.28 percent to 907,000 won.

Defense giant Hanwha Aerospace rose 4.84 percent to 1,299,000 won, top carmaker Hyundai Motor added 2.82 percent 491,500 won, and major financial group KB Financial closed up 3.81 percent to 138,800 won.

The local currency was quoted at 1,445.4 won against the greenback at 3:30 p.m., up 18.9 won from the previous session.

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South Korean stocks nosedived by more than 5 percent Monday, due largely to a risk-averse sentiment following the nomination of the new Federal Reserve chair, and a sharp decline in silver and gold prices. The Korean won plunged against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 274.69 points, or 5.26 percent, to close at 4,949.67, snapping a four-session winning streak.

The country’s main bourse operator, the Korea Exchange (KRX), issued a sell-side circuit breaker for 5 minutes around noon.

Trade volume was heavy at 568.8 million shares worth 32 trillion won (US$21.9 billion). Losers outnumbered winners 795 to 116.

Foreign and institutional investors offloaded a net 2.5 trillion won and 2.2 trillion won, respectively. Retail investors, on the other hand, went bargain hunting and snapped up a net 4.6 trillion won.

Local stocks came under selling pressure following the nomination of Kevin Warsh, seen widely as a hawkish figure, as Fed chair, and sharp declines in silver and gold prices, according to Lee Kyoung-min, an analyst from Daishin Securities.

“A sharp drop in precious metals triggered the liquidation and margin call of derivatives holding them. This in turn led to the forced liquidation of other assets, as investors went to preserve margins, further amplifying the stock market’s decline,” Lee said.

International gold prices have experienced a sharp decline of over 10 percent in the past few days, while sliver prices plunged over 30 percent.

The local gold market was affected, too, with gold traded on the KRX falling to its lowest permissible limit of 10 percent Monday. It marked the first time KRX gold prices fell to the floor since the market opened in March 2014, according to the bourse operator.

“There is a possibility the benchmark KOSPI could take a breather, considering its sharp gains recently, but a daily decline of 4 to 5 percent seems excessive,” Han Ji-young, a researcher at Kiwoom Securities, said.

Shares closed lower across the board.

Market top-cap Samsung Electronics declined 6.29 percent to 150,400 won, while its chipmaking rival SK hynix tumbled 8.69 percent to 830,000 won.

Top car marker Hyundai Motor retreated 4.4 percent to 478,000 won, bio firm Celltrion lost 3.33 percent to 203,000 won, and defense giant Hanwha Aerospace closed down 4.69 percent to 1,239,000 won.

Financial shares were among the few winners.

Hana Financial Group added 3.2 percent to 103,300 won, and Meritz Financial Group inched up 0.69 percent to 117,400 won.

The Korean won was quoted at 1,464.3 won against the U.S. dollar at 3:30 p.m., down 24.8 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.4 basis points to 3.152 percent, and the return on the benchmark five-year government bonds rose 1.2 basis points to 3.448 percent.

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