The KOSPI rose for a fourth straight session to the 6,800 level. The U.S. July consumer price index released overnight matched expectations, easing concerns about currency tightening, and a tailwind from U.S.-driven artificial intelligence (AI) lifted the index.
The KOSPI closed at 6,813.34, up 3.56% (234.30 points) from the previous day. Opening at 6,773.92, up 194.88 points (2.96%), the KOSPI at one point during the session climbed more than 4%.
Foreign investors were net buyers of Korean stocks for a second day in a row. In the main board, foreigners net bought 2.4 trillion won, and institutions were also net buyers by 710.5 billion won. Individuals alone were net sellers of more than 3 trillion won.
The market rose on growing expectations that rates will be kept on hold and a revival in investor sentiment toward AI. The annual rise in the U.S. consumer price index (CPI) for July, released overnight, was 3.4%. It matched experts' expectations, and the pace of increase eased somewhat. Concerns that the U.S. Central Bank will raise its benchmark rate also diminished.
On top of that, earnings from AI cloud firms CoreWeave, Super Micro Computer, and Nēvus confirmed solid demand for AI infrastructure, reviving investor sentiment.
Kang Jin-hyeok, a researcher at Shinhan Investment & Securities, said, "With a benign CPI, a run of strong results among AI infrastructure stocks, and announcements of major cloud contracts, investor sentiment toward AI has improved."
The U.S. tailwind extended to domestic chip stocks. Samsung Electronics(005930) rose 4.88% to finish above the mid-260,000 won range, and SK hynix(000660) gained 5.92%. Samsung Electro-Mechanics(009150) at one point jumped more than 12%.
Lee Kyung-min, a researcher at Daishin Securities, said, "As the U.S. chip tailwind spread to the domestic semiconductor sector, investor sentiment strengthened," adding, "continued foreign net buying drove broad-based strength across the sector, and the rally in the AI infrastructure value chain was particularly pronounced."
The KOSDAQ closed at 861.37, up 0.29% (2.46 points) from the previous day. The KOSDAQ opened the day at 863.15, up 4.24 points (0.49%).
The KOSDAQ market was led by individuals. While individuals were net buyers of 292.8 billion won, foreigners and institutions sold 163.1 billion won and 129.4 billion won, respectively.
Researcher Kang said, "As KOSPI large caps showed strength, the KOSDAQ started flat," adding, "inflows centered on materials, components, and equipment."