South Korean Shares Rise for Fifth Consecutive Session Led by Chip Rally

South Korean shares ended sharply higher for the fifth straight session on Friday, August 14, as investors increased holdings in major chipmakers. The benchmark Korea Composite Stock Price Index (KOSPI) rose 164.60 points, or 2.42 percent, to close at 6,977.94. Technology stocks led the advance, with Samsung Electronics rising 2.4 percent to 274,500 won and SK hynix gaining 3.26 percent to 1.65 million won. Other notable gains included Hyundai Motor, which jumped 8.2 percent to 453,000 won, and Hanwha Ocean, which rose 5.6 percent to 95,800 won. Conversely, Hanwha Aerospace fell 2.1 percent to 1.16 million won and LIG Defense and Aerospace declined 2.6 percent to 815,000 won.

Market activity included a net purchase of 3.04 trillion won by foreign investors, which offset 3 trillion won in combined net selling by institutions and individuals. Trade volume reached 416 million shares worth 26.73 trillion won. The Korean won rose 1.1 won against the U.S. dollar to close at 1,418.3 won. Bond prices closed lower, with the yield on three year Treasurys rising to 3.796 percent and the benchmark five year government bond yield climbing to 4.047 percent.

Analysts noted that investor concerns eased following better than expected inflation data in July from the United States. Overnight, the Dow Jones Industrial Average rose 0.13 percent and the Nasdaq Composite climbed 0.81 percent. This trend fueled expectations that the U.S. Federal Reserve could delay interest rate hikes if inflation remains at current levels.