Will Seoul Stocks Continue Their Rally on Trade Deal Hopes?
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Synopsis
Seoul's stock market has reached unprecedented heights, driven by excitement over a potential trade agreement with the U.S. Technology and automobile sectors are leading the charge, while analysts remain optimistic about AI investments. What does this mean for investors?
Key Takeaways
- Seoul's stock market reached an all-time high.
- Optimism over a U.S. trade deal fueled gains.
- Technology and automobile sectors led the charge.
- Institutional and foreign investors were net buyers.
- The Korean won appreciated against the U.S. dollar.
Seoul, Oct 16 (NationPress) South Korean equities surged to a new all-time peak on Thursday, propelled by strong performances in technology and automobile sectors, fueled by optimism surrounding a potential trade agreement with the United States. The Korean won appreciated against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) soared by 91.09 points, or 2.49 percent, closing at 3,748.37, marking its first ascent past the 3,700 threshold, as per reports from Yonhap news agency.
Trading activity was moderate, with a volume of 487.77 million shares valued at 17.37 trillion won (US$12.2 billion). The number of gainers outpaced decliners at 492 to 387.
Both institutional and foreign investors were net buyers, acquiring shares worth 741.76 billion won and 652.76 billion won, respectively, while retail investors sold a net of 1.39 trillion won.
The Seoul stock market enjoyed its second consecutive day of gains following U.S. Treasury Secretary Scott Bessent's encouraging comments on the trade dialogue between Seoul and Washington, along with rising optimism regarding artificial intelligence (AI) investments, according to analysts.
Bessent stated on Wednesday (U.S. time) that the U.S. is nearing the completion of trade negotiations with South Korea, as the two allies strive to finalize the details of Korea's $350 billion investment commitment.
“His statement indicating no bubble in AI investments also positively impacted technology shares in both the U.S. and Korea,” noted Lee Jae-won, an analyst at Shinhan Securities Co..
Seoul's National Security Adviser Wi Sung-lac expressed optimism that a compromise could ultimately be reached in trade discussions between Seoul and Washington.
In the Seoul market, technology and automotive shares were the primary drivers of growth.
Samsung Electronics, a market leader, surged by 2.84 percent to a record high of 97,700 won, while the second-largest chipmaker SK hynix escalated by 7.1 percent to 452,500 won.
Top automaker Hyundai Motor jumped 8.28 percent to 242,000 won, and its smaller counterpart Kia advanced 7.23 percent to 111,300 won, spurred by increasing optimism regarding the Seoul-Washington tariff agreement.
Conversely, among the decliners, state-run Korea Gas Corp. fell by 0.12 percent to 40,350 won, and leading low-cost carrier Jeju Air decreased by 0.81 percent to 6,150 won.
Hanwha Aerospace Industries dropped 1.89 percent to 936,000 won, and Korea Aerospace Industries fell by 1.3 percent to 98,700 won.
The Korean won was valued at 1,417.90 won against the U.S. dollar as of 3:30 p.m., a rise of 3.4 won from the previous day's close.
Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys increased by 4.9 basis points to 2.569 percent, and the yield on benchmark five-year government bonds rose by 4.4 basis points to 2.684 percent.
Point of View
I believe this rally reflects a growing confidence in both the South Korean economy and its international trade relationships. The optimism surrounding AI investments and the potential trade deal with the U.S. suggests a robust future for our markets.
NationPress
16/10/2025
Frequently Asked Questions
What drove the recent surge in Seoul's stock market?
The surge was primarily driven by optimism regarding a potential trade deal with the U.S. and strong performances in the technology and automobile sectors.
How did the KOSPI perform recently?
The KOSPI jumped 91.09 points, or 2.49 percent, closing at 3,748.37, marking a new all-time high.
Who were the main investors in the market?
Institutional and foreign investors were net buyers, while retail investors sold a net of 1.39 trillion won.
What impact did U.S. Treasury Secretary's remarks have?
His positive comments about the trade negotiations and AI investments gave a boost to both technology stocks and overall market sentiment.
How did the Korean won perform against the U.S. dollar?
The Korean won rose against the U.S. dollar, reaching 1,417.90 won as of 3:30 p.m.
