South Korean Stocks Open Higher Despite US Market Losses

Strategic Insights -

Despite losses on Wall Street, South Korean stocks bucked the trend and opened higher on Monday, driven by advances in technology shares. The Korea Composite Stock Price Index (KOSPI) rose 8.06 points, or 0.25 percent, to 3,213.18 in the first 15 minutes of trading. The gains in Seoul came as a surprise, given the weaker-than-expected August jobs report, which led to losses on US stock markets. The benchmark Dow Jones Industrial Average fell 0.48 percent, while the tech-heavy Nasdaq composite edged down 0.03 percent.

Key Takeaways:

  • The Korea Composite Stock Price Index (KOSPI) rose 8.06 points, or 0.25 percent, to 3,213.18 in the first 15 minutes of trading on Monday.
  • Technology shares led the gains in Seoul, with market bellwether Samsung Electronics rising 1.01 percent and No. 2 chipmaker SK hynix climbing 1.28 percent.
  • Home appliance maker LG Electronics gained 0.13 percent, and Samsung SDS, the IT services unit of Samsung Group, jumped 1.78 percent.
  • US stocks, however, closed lower after the August jobs report came in weaker than expected, with the Dow Jones Industrial Average falling 0.48 percent and the tech-heavy Nasdaq composite edging down 0.03 percent.
  • Hyundai Motor and Kia Corp., two of South Korea's top automakers, extended their losses following a raid last week at a Hyundai Motor plant in the US state of Georgia, where about 475 workers, including 300 South Koreans, were arrested over alleged unlawful employment practices.
  • The local currency, the South Korean won, was trading at 1,389.45 won against the US dollar as of 9:15 am, up 1.55 won from the previous session.

Statistics:

  • KOSPI rose 8.06 points, or 0.25 percent, to 3,213.18.
  • Samsung Electronics rose 1.01 percent.
  • SK hynix climbed 1.28 percent.
  • LG Electronics gained 0.13 percent.
  • Samsung SDS jumped 1.78 percent.
  • Hyundai Motor lost 1.59 percent.
  • Kia Corp. slipped 1.97 percent.
  • The local currency, the South Korean won, was trading at 1,389.45 won against the US dollar, up 1.55 won from the previous session.

Sources:

  • Yonhap News Agency (No date provided)
  • Wall Street Journal (No date provided)