22.08.202502:15:21UTC+00KOSPI Rises on Tech Gains, Powell Speech in Focus

The benchmark KOSPI index rose by 1.1% to approximately 3,170 on Friday, spearheading gains across Asian markets despite declines on Wall Street overnight. This surge comes as investors anticipate Federal Reserve Chair Jerome Powell’s speech at Jackson Hole for insights into future monetary policy directions. Market participants are particularly interested in determining the timeline for potential interest rate cuts in the United States, amidst weak labor market data and enduring inflation concerns. On the domestic front, the strength of the technology and defense sectors played a pivotal role in Seoul's robust performance compared to the rest of Asia. Investor sentiment received a boost from a rebound in semiconductor stocks, breaking a five-day losing streak, with prospects for stabilizing global demand by year-end. The rally was led by blue-chip companies, notably Samsung Electronics, which climbed 1.4%, and SK Hynix, which increased by 1.2%. Defense-related firms also showed significant gains, with Hanwha Aerospace surging 5.3%, highlighting continued confidence in export growth and supportive government policies for the sector. Conversely, selective profit-taking impacted the battery and automotive sectors, resulting in a 0.5% dip for LG Energy Solution and a 0.2% decline for Hyundai Motor.