On the 12th, the KOSPI index set a record high for a third straight session. Expectations for U.S. interest rate cuts continued, and as confidence recovered in the government's stock market revitalization policy, investor sentiment was seen as improving. With positive outlooks for the semiconductor sector also continuing, Samsung Electronics hit a 52-week high and SK hynix set a fresh all-time high.
The KOSPI closed at 3,395.54, up 51.34 points (1.54%) from the previous day, setting intraday and closing record highs. The KOSPI's gain this year topped 40%.
The KOSPI opened at 3,374.65, up 0.91% from the previous session, and rewrote the record from early trading. As foreign buying persisted, gains gradually widened, and in the afternoon, comments from the presidential office hinting at possible easing of the large shareholder criteria helped the index finish at a record high.
Institutions and foreigners led the market by going on a "buying" spree worth 1.2 trillion won and 700 billion won, respectively. Individuals sold nearly 2 trillion won to take profits.
On expectations of U.S. rate cuts, New York stocks closed at record highs overnight. In Korea, hopes continued during trading hours for "easing of the large shareholder standard" in the stock capital gains tax. Both domestic and external conditions together funneled money into the stock market.
According to the U.S. Labor Department on the 11th (local time), the August consumer price index (CPI) rose 0.4% from the previous month. It exceeded market expectations by 0.1 percentage point, but increased 2.9% from a year earlier, in line with forecasts, easing market concerns over inflation pressure.
As a result, the possibility of an economic slowdown came to the fore over inflation, boosting expectations for rate cuts. Lee Kyung-min, an analyst at DAISHIN SECURITIES, said, "The market interprets the weakness in the labor market as adding greater urgency to the Federal Reserve's rate cut decision than inflation," adding, "A September cut is already a foregone conclusion, and the outlook for three cuts within the year has risen to 73.6%."
Domestic policy expectations also fueled the rally. The presidential office said that regarding President Lee Jae-myung's remark at the 100th-day press conference the day before (the 11th) that there was "no need to insist" on strengthening the large shareholder criteria for the stock capital gains tax, "You can assume the decision has been made to simply keep it at 5 billion won."
As the "AI bubble" argument lost steam, Samsung Electronics and SK hynix, the No. 1 and No. 2 KOSPI stocks by market cap, set a new 52-week high and an all-time high, respectively, leading the KOSPI. Overnight in New York, semiconductor stocks such as Micron jumped across the board. In addition, SK hynix said it had built the world's first mass production system for HBM4 (sixth-generation high-bandwidth memory), and its stock closed up 7%.
Shares of related companies also jumped amid the frenzy over Netflix's animated "K-pop Demon Hunters (Ke-De-Hun)." With strong ramen exports confirmed the day before, Nongshim, which released a collaboration product with "Ke-De-Hun," rose 6.97%. OTOKI (5.87%) and SAJODONGAONE (23.57%) also gained. However, rival Samyang Foods (-0.86%) ended slightly lower.
Expectations for rate cuts sent a warm breeze through growth and tech stocks in general. Shares of Kakao affiliates, including Kakao (9.35%) and Kakao Pay (5.1%), trended higher, while NAVER (1.29%) and NCSOFT (8.91%) also closed up. Biotech, considered a rate-cut beneficiary, was broadly strong. SK bioscience (6.5%), L&C BIO (20.04%), VORONOI (12.64%), and Alteogen (3.91%) also rose.
The KOSDAQ index closed at 847.08, up 12.32 points (1.48%) from the previous trading day. On the KOSDAQ market, foreigners and institutions showed net buying of 170 billion won and 100 billion won, respectively. Only individuals net sold 250 billion won.
As of the market close, the won-dollar exchange rate in the Seoul foreign exchange market was 1,388.2 won per U.S. dollar, down 3.6 won from the previous day.