TLDR
- KOSPI closed at 6,977.94 on Friday, up 2.42% on the day, briefly crossing the 7,000 mark for the first time in three weeks
- Samsung Electronics surged more than 18% for the week; SK Hynix rose around 12% weekly
- The index has rebounded nearly 25% from its July 30 low, entering a technical bull market
- Foreign investors bought a net 3.03 trillion won ($2.13 billion) worth of shares on Friday
- U.S. Producer Price Index came in at 4.7% year-on-year in July, below the 4.9% forecast
South Korea’s main stock index closed out its best week since early June on Friday, driven by a strong recovery in semiconductor stocks and easing U.S. inflation data.
The KOSPI closed at 6,977.94, gaining 2.42% on the day. During the session it briefly crossed the 7,000 level for the first time in three weeks before slipping back as investors took profits after five straight days of gains.
The index ended a seven-week losing streak and has now risen nearly 25% from its July 30 low, placing it in a technical bull market.
Chip Stocks Drive the Gains
Samsung Electronics and SK Hynix led the week’s recovery. Samsung was on track for a weekly gain of more than 18%, while SK Hynix rose around 12% over the same period. On Friday alone, SK Hynix gained 3.26% to close at 1,645,000 won, and Samsung added 2.43% to finish at 274,500 won.
Both stocks had been among the hardest hit during last month’s technology selloff, which was driven by concerns over AI investment and forced unwinding of leveraged positions.
Sentiment in the memory chip sector got a lift after Sandisk outlined an upbeat long-term outlook at its investor day. The company said it is targeting revenue growth in the mid- to high-teens annually through 2030 and pledged to return 100% of excess free cash flow to shareholders.
Foreign investors were active buyers on Friday, purchasing a net 3.03 trillion won, equivalent to around $2.13 billion. Institutional and retail investors were net sellers.
U.S. Inflation Data Adds to Positive Mood
U.S. inflation figures released this week supported the broader market tone. The Producer Price Index rose 4.7% year-on-year in July, coming in below the 4.9% forecast. Core PPI rose 4.2%, in line with expectations.
The data eased concerns about any imminent rate hike from the Federal Reserve, which helped lift investor confidence across global markets including South Korea.
Outside of chips, other sectors also moved higher. Shipbuilders including Hanwha Ocean and HD Korea Shipbuilding & Offshore Engineering rallied after the U.S. moved to allow foreign companies to build up to two naval vessels in their home countries.
Auto-related stocks also gained on reports that Hyundai Motor Group is reorganizing its robotics supply chain.
LG Electronics traded higher after LG Group Chairman Koo Kwang-mo and Nvidia CEO Jensen Huang met again following a two-month gap to advance their partnership in physical AI.
The Kosdaq also extended its winning streak, rising 0.38% to close at 864.65. The won closed at 1,418.3 per dollar, down 1.1 won from the previous session.
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