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(Seoul=Yonhap Infomax) Kyu Sun Lee – South Korea's benchmark KOSPI index rebounded above the 4,000 mark, buoyed by robust earnings from US chip giant Nvidia and expectations of a boost for Korean exporters following China's escalation of its de facto ban on Japanese seafood imports ("Hanilryeong").
On the 20th, the KOSPI closed at 4,004.85, up 75.34 points (1.92%) from the previous session.
The index briefly touched a high of 4,059.37 before paring gains in the afternoon as investors locked in profits.
In the main board, institutional investors and foreigners were net buyers, purchasing approximately 750 billion won ($635 million) and 640 billion won ($542 million) respectively, providing strong support for the index. In contrast, retail investors offloaded around 1.4 trillion won ($1.19 billion) in shares.
The rally was led by Nvidia’s overnight “earnings surprise” in the US. CEO Jensen Huang dismissed concerns over an AI bubble, citing “overwhelming demand for Blackwell,” which revived sentiment for semiconductor stocks.
Samsung Electronics Co., South Korea's largest company by market value, surged 4.25% to close at 106,000 won, reclaiming the “100,000-won club.” SK hynix Inc. gained 1.60% to 571,000 won. Related value chain stocks such as ISU Petasys Co. (up 4.47%) and Hanmi Semiconductor Co. (up 2.32%) also posted strong gains.
China’s move to intensify its “Hanilryeong” policy—effectively a retaliatory measure against Japan’s seafood imports—was seen as a positive for Korean firms. Expectations of a windfall for Korean exporters fueled sharp rallies in consumer stocks, including cosmetics, travel, and casino names.
Cosmetics makers Able C&C Co. (up 16.61%), Tonymoly Co. (up 7.19%), and Amorepacific Corp. (up 5.56%) all advanced sharply. Travel and casino operators Lotte Tour Development Co. (up 14.97%), Paradise Co. (up 13.65%), and Grand Korea Leisure Co. (GKL) (up 5.92%) also soared.
Jae Won Lee, analyst at Shinhan Investment Corp., said, “Nvidia’s results and guidance beat market expectations, refuting the AI bubble thesis and drawing foreign capital back to the market.”
He added, “Expectations of a windfall from worsening China-Japan tensions lifted consumer sectors such as cosmetics and travel, providing a broad tailwind for the market. However, macroeconomic uncertainties remain, including a lower probability of a US rate cut in December, so the sustainability of foreign inflows should be monitored.”
By sector, distribution (up 3.20%), machinery (up 3.10%), and electrical/electronics (up 2.82%) led gains, while insurance (down 0.29%) and food & beverages (down 0.21%) edged lower.
The KOSDAQ index finished at 891.94, up 20.62 points (2.37%). Shares of obesity drug developer Peptone jumped 15.40%, while Alteogen Inc. (up 2.39%) and EcoPro Co. (up 4.79%) also contributed to the gains.
The USD/KRW exchange rate closed at 1,467.90 won, up 2.30 won from the previous session.
kslee2@yna.co.kr
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