South Korean stocks surged more than 2% on Sept 18, powered by heavyweight semiconductor shares and the return of foreign investors as easing oil prices helped temper inflation concerns.
The benchmark Kospi jumped 178.82 points, or 2.66%, to close at 6,894.23 on Sept 18. Trading volume reached 321.35 million shares worth 25.56 trillion won (US$18.5 billion).
Sentiment improved as crude prices retreated and US bond-market pressures eased following the Federal Reserve’s 25-basis-point rate hike, its first increase in more than three years. Lower oil prices helped ease fears that elevated energy costs would further intensify inflation.
Yonhap reported that Daishin Securities analyst Lee Kyoung-min said the Kospi had brushed aside macroeconomic concerns, with foreign investors returning to the market on renewed artificial intelligence momentum.
Foreign investors became net buyers after seven consecutive sessions of selling, purchasing a net 424.6 billion won of local shares. Institutions bought a net 1.5 trillion won, while retail investors sold a net 3.59 trillion won.
Chip heavyweights led the rally. Samsung Electronics climbed 3.37% to 261,000 won, while SK hynix surged 6.42% to 1.857 million won, supported by optimism over demand for AI memory chips following upbeat comments on future chip sales from Nvidia chief executive Jensen Huang.
Other large-cap stocks were mixed, with LG Energy Solution slipping 0.27%, KB Financial falling 2.4% and HD Hyundai Heavy Industries losing 2.02%.
The South Korean won weakened slightly to 1,383.3 won per US dollar, while government bond yields declined as investors reassessed inflation and monetary policy risks.
