Latest news with #Kospi
Korea Herald
12 hours ago
- Business
- Korea Herald
Kospi closes above 3,020 for first time in 3 1/2 years
Postelection optimism fuels sharp rally, lifting hopes of a market renaissance The Kospi did not just return — it roared back. On Friday, South Korea's benchmark index surged past the long-awaited 3,000 mark and kept climbing, closing at 3,021.84, up 1.48 percent from the previous session. It was the first time the Kospi ended above 3,020 since Dec. 28, 2021. The rally seemed modest at the start, with the index opening just 0.29 percent higher at 2,986.52. Retail investors led early gains with net buying, while foreigners and institutions sold into strength, keeping the benchmark tightly anchored below the key level. That restraint vanished once the Kospi cracked 3,000 around 10:45 a.m. Momentum took over, lifting the index past 3,010 by 11:20 a.m. The market stayed buoyant throughout the afternoon, hovering near 3,010, before accelerating again in the final minutes of trading. The Kospi hit an intraday peak of 3,022.06 just before the close, settling near the high of the day. It was a historic session: Not only did the Kospi reclaim the 3,000 level for the first time since January 2022, but total market capitalization hit a record 2,472 trillion won. According to the Korea Exchange, the Kospi first crossed the 3,000 mark on Jan. 7, 2021, peaking at 3,305 in July that year. But post-COVID-19 momentum faded amid a global slowdown and recession fears, pushing the index into a prolonged slump. For much of the past year, it remained trapped in a narrow range between 2,200 and 2,800. Gains were broad-based, with most of the Kospi's top market heavyweights finishing higher. SK hynix and LG Energy Solution each rose more than 4 percent, while Naver surged nearly 7 percent. Hyundai Motor climbed 1.5 percent and Samsung Biologics added 1.7 percent. The tech-heavy Kosdaq also posted solid gains, rising 1.15 percent to close at 791.5. Institutional and foreign investors bought a combined 84 billion won, offsetting retail selling. Friday's milestone extends a two-week honeymoon rally under President Lee Jae-myung's new administration, reinforcing renewed investor confidence despite external headwinds, including Middle East tensions and lingering tariff risks. The Kospi has staged a near-unbroken rally since June 2, the eve of the general election, logging only one down day on June 13. After crossing the 2,700 mark on Lee's first full day in office, the index has jumped 12 percent, buoyed by expectations for policy reform and pro-growth momentum. 'The Kospi reversed course earlier this year as dip-buying resumed and the Trump administration announced tariff deferrals, with the rally gaining further traction around the presidential election,' the Korea Exchange said. 'The launch of the new administration has eased political uncertainty and lifted sentiment on expectations of market-friendly policies.' Analysts say the market is responding sharply to government signals. 'The Kospi's strength is being driven more by expectations of capital market reform and a valuation rerating than by earnings growth,' said Kang Jin-hyeok, analyst at Shinhan Securities. He added that Friday's rally reflected investor optimism following Thursday's unveiling of a 30.5 trillion won ($22.3 billion) supplementary budget. "This, combined with expectations of one or two additional rate cuts later this year, is fueling hopes for increased liquidity in the market.' Market watchers expect momentum to persist, brushing aside concerns of postelection fatigue. 'If current earnings trends hold, the Kospi could reach 3,100 by year-end,' said Noh Dong-kil, strategist at Shinhan Securities. 'And if rising liquidity drives a further rerating in valuations, the index could climb as high as the 3,400 range.' 'Despite the rally, Kospi's valuation remains at a neutral level," said Lee Soo-jung of Meritz Securities, adding, "With stimulus measures such as the supplementary budget and revisions to the Commercial Act upcoming, there's a strong possibility of an overshoot in the Korean stock market.' Lee anticipated foreigners to remain key drivers. After nearly 10 months of net selling, foreign investors turned net buyers in May, purchasing 1.2 trillion won, followed by an additional 5.3 trillion won in June. They remain net sellers of 8 trillion won year-to-date. Still, caution lingers as external risks and a slowing domestic economy continue to pressure sentiment. 'Despite strong policy momentum and supportive catalysts unique to the Korean market, broader fundamentals and external risks — such as weak earnings prospects, trade tensions and geopolitical instability — should not be overlooked,' said Han Ji-young, strategist at Kiwoom Securities. 'A breakout above 3,100 this year is possible, but navigating volatility will be crucial at those levels.'
Int'l Business Times
15 hours ago
- Business
- Int'l Business Times
Crude Sinks As Trump Delays Decision On Iran Strike
Oil prices tumbled Friday and equity traders fought to end a volatile week on a positive note after Donald Trump said he would consider over the next two weeks whether to join Israel's attacks on Iran. Speculation had been swirling that Trump would throw his lot in with Israel, but on Thursday he said he would decide "within the next two weeks" whether to involve the United States, giving diplomacy a shot to end the hostilities. While tensions are sky high amid fears of an escalation, the US president's remarks suggested the crisis could be prevented from spiralling into all-out war between the Middle East foes. Since Israel first hit Iran last Friday, the two have exchanged deadly strikes and apocalyptic warnings, though observers said the conflict has not seen a critical escalation. European foreign ministers were due to meet their Iranian counterpart on Friday in Geneva. In a statement read out by White House Press Secretary Karoline Leavitt, the president said: "Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks." Leavitt added: "If there's a chance for diplomacy the president's always going to grab it, but he's not afraid to use strength as well." Both main oil contracts were down around two percent Friday but uncertainty prevailed and traders remained nervous. "Crude still calls the shots, and volatility's the devil in the room -- and every trader on the street knows we're two headlines away from chaos," said Stephen Innes at SPI Asset Management. "Make no mistake: we're trading a geopolitical powder keg with a lit fuse. "President Trump's two-week 'thinking window' on whether to join Israel's war against Iran is no cooling-off period -- it's a ticking volatility clock." Stocks were mixed following a public holiday in New York, with Hong Kong, Taipei, Mumbai and Bangkok all up with London, Paris and Frankfurt. Seoul's Kospi led the gains, rising more than one percent to break 3,000 points for the first time in nearly three and a half years. The index has risen every day except one since the June 4 election of a new president, which ended months of political crisis and fuelled hopes for an economic rebound. Tokyo fell as Japanese core inflation accelerated, stoked by a doubling in the cost of rice, a hot topic issue that poses a threat to Prime Minister Shigeru Ishiba ahead of elections next month. There were also losses in Shanghai, Sydney, Singapore, Manila and Jakarta. The Middle East crisis continues to absorb most of the news but Trump's trade war remains a major obstacle for investors as the end of a 90-day pause on his April 2 tariff blitz approaches with few governments reaching deals to avert them being imposed. "While the worst of the tariffs have been paused, we suspect it won't be until those deadlines approach that new agreements may be finalised," said David Sekera, chief US market strategist at Morningstar. "Until then, as news emerges regarding the progress and substance of trade negotiations, these headlines could have an outsize positive or negative impact on markets." Brent North Sea Crude: DOWN 2.6 percent at $76.85 per barrel West Texas Intermediate: DOWN 1.9 percent at $73.62 per barrel Tokyo - Nikkei 225: DOWN 0.2 percent at 38,403.23 (close) Hong Kong - Hang Seng Index: UP 0.8 percent at 23,421.80 Shanghai - Composite: DOWN 0.1 percent at 3,359.90 (close) London - FTSE 100: UP 0.3 percent at 8,819.26 Euro/dollar: UP at $1.1517 from $1.1463 on Thursday
France 24
15 hours ago
- Business
- France 24
Crude sinks as Trump delays decision on Iran strike
Speculation had been swirling that Trump would throw his lot in with Israel, but on Thursday he said he would decide "within the next two weeks" whether to involve the United States, giving diplomacy a shot to end the hostilities. While tensions are sky high amid fears of an escalation, the US president's remarks suggested the crisis could be prevented from spiralling into all-out war between the Middle East foes. Since Israel first hit Iran last Friday, the two have exchanged deadly strikes and apocalyptic warnings, though observers said the conflict has not seen a critical escalation. European foreign ministers were due to meet their Iranian counterpart on Friday in Geneva. In a statement read out by White House Press Secretary Karoline Leavitt, the president said: "Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks." Leavitt added: "If there's a chance for diplomacy the president's always going to grab it, but he's not afraid to use strength as well." Both main oil contracts were down around two percent Friday but uncertainty prevailed and traders remained nervous. "Crude still calls the shots, and volatility's the devil in the room -- and every trader on the street knows we're two headlines away from chaos," said Stephen Innes at SPI Asset Management. "Make no mistake: we're trading a geopolitical powder keg with a lit fuse. "President Trump's two-week 'thinking window' on whether to join Israel's war against Iran is no cooling-off period -- it's a ticking volatility clock." Stocks were mixed following a public holiday in New York, with Hong Kong, Taipei, Mumbai and Bangkok all up with London, Paris and Frankfurt. Seoul's Kospi led the gains, rising more than one percent to break 3,000 points for the first time in nearly three and a half years. The index has risen every day except one since the June 4 election of a new president, which ended months of political crisis and fuelled hopes for an economic rebound. Tokyo fell as Japanese core inflation accelerated, stoked by a doubling in the cost of rice, a hot topic issue that poses a threat to Prime Minister Shigeru Ishiba ahead of elections next month. There were also losses in Shanghai, Sydney, Singapore, Manila and Jakarta. The Middle East crisis continues to absorb most of the news but Trump's trade war remains a major obstacle for investors as the end of a 90-day pause on his April 2 tariff blitz approaches with few governments reaching deals to avert them being imposed. "While the worst of the tariffs have been paused, we suspect it won't be until those deadlines approach that new agreements may be finalised," said David Sekera, chief US market strategist at Morningstar. "Until then, as news emerges regarding the progress and substance of trade negotiations, these headlines could have an outsize positive or negative impact on markets." Key figures at around 0715 GMT Brent North Sea Crude: DOWN 2.6 percent at $76.85 per barrel Tokyo - Nikkei 225: DOWN 0.2 percent at 38,403.23 (close) Shanghai - Composite: DOWN 0.1 percent at 3,359.90 (close) London - FTSE 100: UP 0.3 percent at 8,819.26 Euro/dollar: UP at $1.1517 from $1.1463 on Thursday Pound/dollar: UP at $1.3467 from $1.3429 Dollar/yen: DOWN at 145.38 yen from 145.63 yen Euro/pound: UP at 85.51 pence from 85.36 pence © 2025 AFP
Korea Herald
21 hours ago
- Business
- Korea Herald
Kospi reclaims 3,000 amid postelection investor optimism
South Korea's benchmark Kospi briefly climbed above the 3,000 mark on Friday for the first time since January 2022, buoyed by retail investor buying. The index touched an intraday high of 3,000.46 at around 10:45 a.m. in Seoul, after opening 0.29 percent higher at 2,986.52. Retail investors were the sole net buyers, scooping up about 30 billion won ($21.8 million) worth of shares as of 11 a.m., while foreigners and institutions turned net sellers. The milestone follows a two-week honeymoon rally under the new administration, signaling renewed investor confidence despite rising external risks from geopolitical tensions and tariff uncertainty.
Korea Herald
2 days ago
- Business
- Korea Herald
Naver shares surge on AI optimism, hit 52-week high
Naver shares surged for the second consecutive session on Thursday, buoyed by investor optimism over the Lee Jae Myung administration's commitment to nurturing the domestic artificial intelligence sector. The internet giant closed at 252,000 won ($182.47) on the main bourse Kospi, up 3.49 percent from the previous session. This followed a nearly 18 percent on Wednesday, marking a two-day rally that has captured market attention. It is the first time Naver shares have topped 250,000 won since Aug. 19, 2022, when it traded at 251,000 won. During early trading Thursday, Naver briefly touched 259,000 won, setting a new 52-week high. The company's market capitalization ranking also rose, climbing from 11th to 8th on the Kospi in just two trading days, overtaking Samsung Electronics preferred shares, Kia and Doosan Enerbility. Investor sentiment has been further buoyed by the appointment of Ha Jung-woo, head of Naver's Future AI Center, to the newly established post of senior presidential secretary for AI and future technology planning. His appointment is seen as a strategic move aligning with the government's AI ambitions. President Lee has pledged to build a national large language model to make AI accessible to all citizens, raising expectations for Naver's participation in the landmark project. Global investment banks have reinforced this momentum. On Tuesday, JPMorgan raised its target price for Naver from 250,000 won to 270,000 won, while maintaining its 'overweight' rating. Citigroup followed suit Thursday, naming Naver its top pick among Korean internet platform stocks and lifting its target price from 270,000 won to 300,000 won. 'Foreign investors turned net buyers after JPMorgan raised its investment rating on Naver to 'overweight,' citing potential benefits from the Korean government's 100 trillion won AI investment plan and the appointment of a new senior secretary for AI who previously served at the IT giant,' said Lee Kyung-min, an analyst from Daishin Securities. Meanwhile, shares of Naver's crosstown rival Kakao also rallied as a potential beneficiary of AI policies. Kakao closed at 60,400 won, up 9.42 percent from the previous session. During the day, the stock hit a 52-week high of 61,800 won.
