South Korean financial markets witnessed a positive turn on Wednesday, with the benchmark index closing higher, driven primarily by a recovery in the crucial semiconductor sector. The gains came despite a mixed reading on the U.S. jobs market, which left global investor sentiment somewhat muted.
Chipmakers Lead Market Recovery
The key driver for the day's uptick was the rebound in chip stocks. Samsung Electronics, a heavyweight on the index, saw its shares rise by 2.72%. Its peer, SK Hynix, also participated in the gains, helping to offset declines seen earlier in the week. This sectoral strength provided crucial support to the broader market.
However, the performance was not uniform across all major stocks. Battery maker LG Energy Solution experienced a slight dip of 0.72%. In the automotive sector, shares of Hyundai Motor and Kia Corp remained flat. Steelmaker POSCO Holdings added 1.46%, while biopharmaceutical firm Samsung BioLogics faced selling pressure, declining by 2.23%.
Key Market Indicators and Foreign Activity
By the close of the mid-day session, the benchmark KOSPI was up 22.06 points, or 0.55%, settling at 4,021.19. The trading activity showed a nearly balanced breadth, with 401 stocks advancing against 459 that declined out of a total of 925 traded issues.
Notably, foreign investors were net sellers in the market, offloading shares worth a substantial 272.0 billion Korean won. This selling activity by overseas investors contrasted with the overall positive movement of the index.
Currency and Bond Market Movements
In the currency market, the Korean won weakened against the U.S. dollar. The won was quoted at 1,476.7 per dollar on the onshore settlement platform, marking a 0.25% decrease from its previous close of 1,473.0. For the year so far, the won has depreciated by 0.3% against the dollar.
The debt market presented a mixed picture. The yield on the most liquid three-year Korean treasury bond saw a marginal increase of 0.2 basis points to 2.999%. In contrast, the benchmark 10-year yield fell by 1.4 basis points to 3.296%. The broader context for the day's trade included data showing a stronger-than-expected rebound in U.S. job growth for November, following a sharp drop in October.
Year-to-date, the KOSPI has delivered an impressive performance, rising by 67.59%, highlighting a period of significant growth for South Korean equities despite ongoing global economic uncertainties influenced by trade policies.
