Although expectations for a U.S. rate hike revived and confidence in the level of artificial intelligence (AI) technology increased—news that could be favorable for the domestic stock market—the KOSPI index on the 25th ended with only a slight rise. Some noted that the prolonged weakness of the won is acting as a burden on inflows of large foreign funds.
The KOSPI index closed at 3,857.78, up 11.72 points (0.30%) from the previous session. It opened in the morning at 3,942.36, up 96.30 points (2.50%), but the intraday gains narrowed. It even turned lower at one point in the afternoon. Foreign investors were net buyers of more than 100 billion won, but that did not lift the index much.
Given the sharp rise in the U.S. stock market the previous day, the KOSPI index's modest gains were somewhat disappointing. In addition to comments from Federal Reserve officials involved in setting the U.S. benchmark rate supporting a rate cut in Dec., concerns about an "AI bubble" eased significantly as the capabilities of Google's released AI "Gemini 3" were confirmed, sending the Nasdaq in the U.S. up nearly 3%.
In Korea's market, semiconductor and other tech stocks jumped early in the session. But the gains did not last long, and SK hynix turned lower intraday.
Analysts said the ongoing weakness of the won is dampening foreign investors' appetite for the domestic stock market. With the won-dollar exchange rate approaching the 1,500-won level, the foreign exchange authorities have mobilized the National Pension Service, major exporting companies, and even securities firms for an all-out response, but the weak-won trend has been hard to break. Recently, the won has been moving in the upper 1,470s against the dollar.
Among top-cap stocks, Doosan Enerbility and KB Financial Group rose, while Samsung Biologics, NAVER, and Hanwha Ocean fell by relatively large margins.
The KOSDAQ index, which opened higher, finished lower. The KOSDAQ ended at 856.03, down 0.41 points (0.05%). Foreign investors were net buyers, but as most of the top-cap stocks declined, the index also showed a slightly weak tone.