South Korean stocks drop after seven-day rally on weak economic data
Press Hub UCapital
Share:
Kospi and Kosdaq retreat as producer prices rise
South Korean equities declined for the first time in seven sessions, with the Kospi index falling 0.7% to 2,654.06 and the Kosdaq dropping 1.3% to 768.27. The pullback was driven by higher producer prices, which climbed 1.7% year-on-year in january, maintaining the same pace as december. Agricultural, livestock, and manufacturing costs contributed to the rise, signaling potential inflationary pressures.
Consumer sentiment improves but remains below 100
The composite consumer sentiment index (CCSI) increased to 95.2 in february, up from 91.2 in january, according to The Bank of Korea a reading below 100 still suggests pessimism in the economic outlook, limiting market enthusiasm despite the uptick.
Corporate moves provide some bright spots
Hanwha Aerospace (012450) signed a memorandum of understanding (mou) with Estonia’s Milrem Robotics to develop robotic combat vehicles (rcv) and expand into global defense markets shares rose nearly 1% on the news lotte chemical (011170) advanced 2.3% after announcing the sale of its 75.01% stake in lotte chemical Pakistan for 97.9 billion won, part of its broader cost-cutting measures.
Trading Outlook
The Kospi remains near key support at 2,640-2,650, with further downside risks if macroeconomic data disappoints resistance stands at 2,680, with a break above this level potentially signaling a return to the recent rally. Investors will be watching inflation trends and central bank policy signals for further direction.
South Korean equities declined for the first time in seven sessions, with the Kospi index falling 0.7% to 2,654.06 and the Kosdaq dropping 1.3% to 768.27. The pullback was driven by higher producer prices, which climbed 1.7% year-on-year in january, maintaining the same pace as december. Agricultural, livestock, and manufacturing costs contributed to the rise, signaling potential inflationary pressures.
Consumer sentiment improves but remains below 100
The composite consumer sentiment index (CCSI) increased to 95.2 in february, up from 91.2 in january, according to The Bank of Korea a reading below 100 still suggests pessimism in the economic outlook, limiting market enthusiasm despite the uptick.
Corporate moves provide some bright spots
Hanwha Aerospace (012450) signed a memorandum of understanding (mou) with Estonia’s Milrem Robotics to develop robotic combat vehicles (rcv) and expand into global defense markets shares rose nearly 1% on the news lotte chemical (011170) advanced 2.3% after announcing the sale of its 75.01% stake in lotte chemical Pakistan for 97.9 billion won, part of its broader cost-cutting measures.
Trading Outlook
The Kospi remains near key support at 2,640-2,650, with further downside risks if macroeconomic data disappoints resistance stands at 2,680, with a break above this level potentially signaling a return to the recent rally. Investors will be watching inflation trends and central bank policy signals for further direction.