South Korean stock market wrapped up the week on a positive note, despite a dip on Friday due to profit-taking. The benchmark KOSPI posted its best weekly gain in a month as easing concerns over US tariffs provided market relief.
South Korea’s stock market ended the week on a stronger note, buoyed by reduced concerns over US tariffs, even as the benchmark KOSPI index slipped on Friday due to profit-taking.
The KOSPI closed down 17.67 points or 0.55% at 3,210.01 on Friday, following weak cues from overnight US markets. However, the index posted a 2.9% weekly gain, its biggest since early July, recovering from a 2.4% decline the previous week.
Analysts observed that the pullback on Friday was largely due to investors securing recent profits, particularly in sectors that saw sharp gains earlier in the week. Despite the daily decline, the overall market sentiment remained positive thanks to improved clarity on US-South Korea trade relations.
The reduction in US tariffs on South Korean imports, from a proposed 25% to an implemented 15%, has eased pressure on policymakers ahead of the country’s upcoming central bank meeting. This clarity has lent stability to the local financial markets and provided breathing room for monetary decisions.
In sectoral performance, Samsung Electronics led the gains among heavyweight stocks with a 1.84% rise, while SK Hynix dropped 2.10%, reflecting mixed performance in the chipmaking space. Battery major LG Energy Solution fell by 2.07%.
Automotive stocks like Hyundai Motor and Kia Corp remained relatively flat, while POSCO Holdings and Samsung BioLogics saw minor losses of 0.67% and 0.68% respectively.
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Foreign investors were net sellers, offloading stocks worth 157.2 billion won, signaling a cautious outlook amid broader market gains. Out of 935 stocks traded, 386 advanced while 488 declined, indicating some consolidation.
In currency markets, the South Korean won weakened slightly, closing at 1,389.6 per USD, down 0.26% from the previous session. The modest depreciation reflects ongoing volatility in global currency flows, particularly as the US dollar continues to strengthen.
Meanwhile, in the bond market, the benchmark 10-year government bond yield edged up 0.8 basis points to 2.775%, while the three-year yield held steady at 2.409%. September futures on three-year treasury bonds slipped by 0.03 point to 107.43, suggesting cautious sentiment in fixed income.
Overall, the easing of trade friction with the US has injected optimism into South Korea’s equity markets, with analysts watching for monetary policy signals later this month. The trajectory of foreign inflows and global macroeconomic developments will remain key drivers in the coming sessions.
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