On the 27th, the KOSPI index extended gains on continued expectations for a U.S. benchmark rate cut. It briefly topped the 4,000 level during the session, but ultimately failed to hold it as foreign buying weakened.
The KOSPI index closed at 3,986.91, up 26.04 points (0.66%) from the previous day. The KOSPI rose as high as 4,023.42 intraday, but the gains narrowed in the afternoon and it gave up the 4,000 level again.
In the stock market that day, institutions and foreigners were net buyers of 473.4 billion won and 152.2 billion won, respectively, driving the index higher. Individuals sold 628.8 billion won worth of shares.
Overnight gains in U.S. tech stocks lifted Korea's leading semiconductor stocks, with SK hynix surging nearly 4%. Samsung Electronics also rose 0.68%, and ISU Petasys climbed more than 3% on expectations of increased orders for Google's artificial intelligence (AI) semiconductor component, the tensor processing unit (TPU). ISU Petasys is said to have secured roughly a 40% share of Google TPUs.
Among other top market-cap stocks, Kia and LG Energy Solution rose 0.71% and 0.57%, respectively. KB Financial Group (-0.80%), Samsung Biologics (-0.30%), and Doosan Enerbility (-0.13%) were slightly weaker.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "With the Bank of Korea holding rates and expectations for a U.S. benchmark rate cut in December, the won-dollar exchange rate stabilized against the U.S. dollar, and foreign buying continued," adding, "We need to see whether the return of foreign investors will be prolonged."
He added, "U.S. Broadcom's results in December and the Federal Open Market Committee (FOMC) outcome will serve as important turning points going forward."
The KOSDAQ index closed at 880.06, up 2.74 points (0.31%) from the prior session. In the KOSDAQ market that day, only individuals were net buyers, purchasing 178.9 billion won in shares, while foreigners and institutions were net sellers of 101.6 billion won and 42.8 billion won, respectively.
Top KOSDAQ market-cap stocks were mixed. Rainbow Robotics rose 2.68%, and ABL Bio (0.81%), Alteogen (0.58%), LEENO Industrial (0.47%), and Kolon TissueGene (0.44%) were slightly higher.
In contrast, Peptron (-3.45%), LigaChem Biosciences (-2.64%), EcoPro BM (-2.00%), EcoPro (-1.92%), and HLB (-0.86%) closed lower.
The won-dollar exchange rate stood at 1,464.9 won as of 3:30 p.m. in the Seoul foreign exchange market, down 0.7 won from the previous day.
The Bank of Korea's Monetary Policy Board kept the benchmark rate at 2.50% per year at the meeting on the direction of monetary policy held that day. On the future course of monetary policy, the board said it would "keep the possibility of a rate cut open, but determine the timing of additional cuts after closely examining changes in domestic and external policy conditions and the resulting growth and inflation trends."