The KOSPI briefly climbed back above 7,000 in intraday trade for the first time in 15 sessions as foreign investors bought Korean shares for a fourth straight session. Semiconductor stocks and Hyundai Motor Group affiliates rose together to drive the index higher, as concerns over U.S. inflation eased.
The KOSPI (Korea Composite Stock Price Index) closed at 6,977.94, up 164.60 points, or 2.42%, from the previous session, according to the Korea Exchange. The index opened at 6,995.67 and rose as high as 7,010.86 during the day, topping the 7,000 mark for the first time since the 24th of last month, before giving back some of its gains late in the session.
The turnaround was driven largely by foreign investors, who shifted to net buying this week after selling a net 7.1 trillion won on the KOSPI last week. They bought a net 3.048 trillion won ($2.2 billion), extending their buying streak to a fourth straight session since the 11th. Over the four days, they bought a total of 8.070 trillion won worth of shares. Buoyed by the inflows, the KOSPI gained more than 11% this week, recovering from a decline of more than 5% the previous week.
Large semiconductor stocks also rose for a fourth consecutive session. Samsung Electronics (005930.KS) closed at 274,500 won, up 2.43%, while SK hynix (000660.KS) ended at 1,645,000 won, up 3.26%. Other chip-related stocks also gained, including Samsung Electronics preferred shares (up 4.15%), Samsung Electro-Mechanics (up 3.66%) and SK Square (up 3.31%).
Hyundai Motor Group affiliates rose across the board on news that the group had shared its humanoid robot business plans with first-tier suppliers. Hyundai Motor (005380.KS) jumped 8.24%, and Hyundai Mobis rose more than 7%. Elsewhere, Samsung Life Insurance (up 3.26%), Samsung C&T (up 1.10%) and LG Energy Solution (up 1.09%) also closed higher. The share of advancing stocks on the KOSPI exceeded 71%, easing concerns about a narrow rally.
Shipbuilding stocks also rose on hopes of gains after U.S. President Donald Trump said he would temporarily allow foreign shipbuilders that have invested in the United States to build vessels domestically. Hanwha Ocean (042660.KS) climbed 5.62%, while HD Korea Shipbuilding & Offshore Engineering (up 3.90%) and HD Hyundai Heavy Industries (up 2.82%) also gained.
U.S. inflation data also helped improve investor sentiment in the Korean market. The U.S. producer price index (PPI) rose 4.7% year-on-year in July, below market expectations. As inflation concerns eased, the S&P 500 broke above 7,800 in intraday trade for the first time and set a fresh closing high.
The KOSDAQ closed at 864.65, up 3.28 points, or 0.38%, from the previous session. After opening at 868.07, the index swung sharply, rising as high as 879.29 and falling as low as 845.41 before finishing higher. The KOSDAQ gained 8.24% over the week.
Lim Jung-eun, an analyst at KB Securities, said the market would focus on the minutes of next week's Federal Open Market Committee (FOMC) meeting to gauge the future direction of interest rates, now that the earnings season at home and abroad has largely wrapped up.
