21.08.202501:38:26UTC+00South Korean Shares Rebound on Tech and Auto Gains

On Thursday, the benchmark KOSPI index experienced a 0.9% increase, reaching approximately 3,160 points. This rise marked a recovery from a series of prior losses and was bolstered by a rebound in major technology and automotive stocks, alongside a decrease in global tech sector weakness. Samsung Electronics saw a 1.9% growth, with LG Energy Solution also posting a slight gain of 0.9%. In the automotive sector, Hyundai Motor climbed 1.5% and Kia edged up by 0.5%. Additional positive performers included Hanwha Aerospace and KB Financial. Conversely, SK Hynix was the sole major stock to decline, falling by 2.2%. Internationally, a tech sector selloff had previously exerted pressure on South Korean shares, but a lessening in U.S. tech stocks' decline contributed to today's gains. Investors remained cautious ahead of Federal Reserve Chair Jerome Powell’s anticipated speech at the Jackson Hole Symposium. Additionally, a slightly stronger won lent some support to investor sentiment. Domestically, South Korea reported stable producer prices in July, with manufacturing costs declining, while service and agricultural prices increased, setting a mixed context for investor perspectives in manufacturing-driven sectors.