With positive factors at home and abroad aligning, the KOSPI index surged on the 10th. As news spread that a U.S. federal government shutdown was close to being lifted, the index closed up more than 3%. Institutions were net buyers of more than 1 trillion won, while expectations for easing the separate taxation on dividend income and positives for individual industries boosted investor sentiment.
On the 10th, the KOSPI index closed at 4,073.24, up 119.48 points (3.02%) from the previous trading day. The KOSPI opened the day at 3,991.87, up 0.96% from the previous trading day, and the intraday gains widened on the back of institutional net buying. At one point during the session it rose to 4,092.91, attempting to reclaim the 4,100 level.
In the KOSPI market, institutions net bought 1.3 trillion won worth, leading the index higher. Individuals and foreigners showed net selling of 1.21 trillion won and 86 billion won, respectively.
Among the top 10 KOSPI stocks by market capitalization, 9 closed higher. Across the entire KOSPI, 807 stocks rose, while 99 fell. Twenty-two stocks were unchanged.
The KOSPI index surged on expectations that the U.S. federal government shutdown (temporary work stoppage), now on its 40th day, was close to ending. On the 9th (local time), in a U.S. Senate vote, some moderate Democrats changed their stance to process a budget bill to end the shutdown. A vote to bring up an amendment to the stopgap budget bill passed with 60 in favor.
Lee Kyung-min, a researcher at Daishin Securities Co., said, "After the House passes the budget bill and President Trump signs it, federal government operations are expected to resume," and added, "As the shutdown, which set a new record for length and has increased constraints on economic growth and uncertainty, is resolved, investor sentiment toward risk assets has improved."
Shares of Samsung Electronics and SK hynix, the leading semiconductor names, posted standout gains. The two stocks each rose close to 3% and 5%, respectively, recovering "100,000 electronics" and "600,000 hynix." The move is seen as reflecting ebbing concerns about an AI bubble after news on the 8th that Jensen Huang, Nvidia chief executive officer (CEO), asked TSMC to supply additional wafers to meet artificial intelligence (AI) demand.
Overnight news that the ruling and opposition parties discussed lowering the top rate for separate taxation on dividend income also ignited investor sentiment. The government's initial plan was 35%, but as discussions proceeded to lower it to 25%, buying flowed into representative high-dividend names in finance, securities, and holding companies.
In the financial sector, Hana Financial Group, Korea Investment Holdings, Shinhan Financial Group, and in the securities sector, NH Investment & Securities, SK Securities, Sangsangin Investment & Securities, and Hanwha Investment & Securities all saw their share prices rise. Representative holding company stocks HS Hyosung, Kolon, Noroo Holdings, and SK also closed higher.
Tire stocks, which released strong results for the third quarter (July–September), also showed strength. Hankook Tire & Technology, which was the last of the three major tire makers to disclose results on the day, posted the highest-ever quarterly results. Earlier, Kumho Tire and NEXEN TIRE also delivered surprise earnings, improving investor sentiment across the sector.
The KOSDAQ index closed at 888.35, up 11.54 points (1.32%) from the previous day. In the KOSDAQ market, institutions turned to net buying in the afternoon, stepping in with about 60 billion won of purchases. Individual and foreign investors posted net sales of about 35 billion won and 25 billion won, respectively.
Among top KOSDAQ stocks by market capitalization, moves were mixed. EcoPro BM, EcoPro, HLB, and PharmaResearch closed higher. In contrast, Alteogen, Peptron, ABL Bio, and LigaChem Biosciences ended the session at prices lower than the previous trading day.
In the Seoul foreign exchange market, the weekly closing price for the won-dollar exchange rate (as of 3:30 p.m.) was 1,451.40 won, down 5.5 won from the previous trading day.