KOSPI Records Strongest Weekly Performance Since June Fueled by Semiconductor Rally

Key Highlights

• The KOSPI finished Friday’s session at 6,977.94, recording a daily advance of 2.42% and momentarily surpassing 7,000 for the first time in three weeks
• Samsung Electronics posted weekly gains exceeding 18%; SK Hynix climbed approximately 12% over the same timeframe
• The benchmark has staged a remarkable 25% recovery from its July 30 trough, officially entering bull market territory
• International investors acquired a net 3.03 trillion won ($2.13 billion) in equities during Friday’s trading
• America’s Producer Price Index registered 4.7% annually for July, undershooting the anticipated 4.9%

Seoul’s primary equity benchmark wrapped up its most impressive weekly performance since the opening weeks of June on Friday, propelled by a robust rebound in chip manufacturers and encouraging inflation metrics from the United States.

The KOSPI finished trading at 6,977.94, advancing 2.42% for the session. The index momentarily pierced the psychologically significant 7,000 threshold during intraday trading for the first time in nearly a month before retreating as market participants locked in profits following five consecutive sessions of appreciation.

The benchmark successfully halted a seven-week decline and has now climbed approximately 25% from its late-July nadir, meeting the conventional definition of a technical bull market.

Semiconductor Manufacturers Spearhead Market Rally

Samsung Electronics and SK Hynix emerged as the primary catalysts behind the week’s resurgence. Samsung charted a course for weekly appreciation surpassing 18%, while SK Hynix registered roughly 12% growth during the equivalent interval. Friday’s session saw SK Hynix advance 3.26% to settle at 1,645,000 won, with Samsung climbing 2.43% to close at 274,500 won.

These equities experienced some of the most severe declines during the previous month’s technology sector correction, which stemmed from anxieties surrounding artificial intelligence capital expenditure and the compulsory liquidation of margin positions.

Market confidence in memory chip producers received a boost following Sandisk‘s presentation of an optimistic multi-year projection at its investor conference. The corporation disclosed plans to achieve revenue expansion in the mid- to upper-teen percentages annually extending to 2030 and committed to distributing 100% of surplus free cash flow to equity holders.

International capital demonstrated aggressive buying behavior Friday, accumulating a net 3.03 trillion won, representing approximately $2.13 billion. Domestic institutional and individual investors recorded net selling activity.

Favorable U.S. Price Data Bolsters Market Sentiment

American inflation statistics published during the week reinforced the constructive market atmosphere. The Producer Price Index expanded 4.7% on an annual basis for July, falling short of the 4.9% consensus estimate. Core PPI increased 4.2%, matching projections.

These figures alleviated apprehensions regarding any potential near-term interest rate increase from the Federal Reserve, contributing to enhanced investor optimism throughout international markets, South Korea included.

Beyond the semiconductor industry, additional sectors registered upward movement. Maritime construction firms such as Hanwha Ocean and HD Korea Shipbuilding & Offshore Engineering surged following Washington’s decision to permit international corporations to construct as many as two military vessels within their domestic facilities.

Automotive-linked equities also appreciated on news that Hyundai Motor Group is restructuring its robotics procurement network.

LG Electronics shares climbed after LG Group’s Chairman Koo Kwang-mo and Nvidia’s CEO Jensen Huang reconvened following a two-month interval to strengthen their collaboration in physical artificial intelligence applications.

The technology-focused Kosdaq index maintained its positive momentum, rising 0.38% to finish at 864.65. The Korean won concluded trading at 1,418.3 against the dollar, weakening 1.1 won from the prior session.