South Korean equities rise as tech and steel sectors rally
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South Korean stocks advanced for the third consecutive session on Wednesday, supported by strong performances in the technology and steel sectors. The benchmark Kospi rose 0.62% to close at 2,628.62, while the Kosdaq fell 0.96% to 738.35. Market leaders Samsung Electronics and SK Hynix climbed nearly 2% and over 1%, respectively, reflecting renewed investor confidence in the semiconductor industry. Steelmaker Posco also posted a gain of more than 2%, contributing to the broader market's positive momentum.
The rally was underpinned by robust economic data. South Korea's exports of information and communications technology (ICT) goods increased by 1.2% year-over-year to $16.7 billion in February, with strong demand from the U.S., Taiwan, and India offsetting weaker shipments to China, the EU, and Japan. The country also recorded a $5.8 billion trade surplus in ICT, driven by solid performances in mobile phones, computers, and communications equipment. Meanwhile, auto exports surged 17.3% year-over-year to 232,978 units, reaching a record $6.1 billion in value, fueled by rising demand in the EU and the Middle East and a 61.7% jump in hybrid electric vehicle exports.
Investor sentiment also benefited from positive corporate developments. LG AI Research, a subsidiary of LG Corporation, unveiled its open-source AI model, EXAONE Deep, which outperformed global peers in mathematics, science, and coding. The model’s recognition by Epoch AI’s Notable AI Models list further bolstered LG Corporation’s stock, which closed 2% higher.
Looking ahead, South Korea’s equity market could maintain its upward trajectory if semiconductor and auto sector tailwinds persist. However, challenges such as weakening demand from China and global trade uncertainties remain key risks. A sustained breakout in Kospi above key resistance levels would indicate stronger bullish sentiment, while any reversal in export growth or semiconductor recovery could introduce downside risks.
South Korean stocks advanced for the third consecutive session on Wednesday, supported by strong performances in the technology and steel sectors. The benchmark Kospi rose 0.62% to close at 2,628.62, while the Kosdaq fell 0.96% to 738.35. Market leaders Samsung Electronics and SK Hynix climbed nearly 2% and over 1%, respectively, reflecting renewed investor confidence in the semiconductor industry. Steelmaker Posco also posted a gain of more than 2%, contributing to the broader market's positive momentum.
The rally was underpinned by robust economic data. South Korea's exports of information and communications technology (ICT) goods increased by 1.2% year-over-year to $16.7 billion in February, with strong demand from the U.S., Taiwan, and India offsetting weaker shipments to China, the EU, and Japan. The country also recorded a $5.8 billion trade surplus in ICT, driven by solid performances in mobile phones, computers, and communications equipment. Meanwhile, auto exports surged 17.3% year-over-year to 232,978 units, reaching a record $6.1 billion in value, fueled by rising demand in the EU and the Middle East and a 61.7% jump in hybrid electric vehicle exports.
Investor sentiment also benefited from positive corporate developments. LG AI Research, a subsidiary of LG Corporation, unveiled its open-source AI model, EXAONE Deep, which outperformed global peers in mathematics, science, and coding. The model’s recognition by Epoch AI’s Notable AI Models list further bolstered LG Corporation’s stock, which closed 2% higher.
Looking ahead, South Korea’s equity market could maintain its upward trajectory if semiconductor and auto sector tailwinds persist. However, challenges such as weakening demand from China and global trade uncertainties remain key risks. A sustained breakout in Kospi above key resistance levels would indicate stronger bullish sentiment, while any reversal in export growth or semiconductor recovery could introduce downside risks.
The rally was underpinned by robust economic data. South Korea's exports of information and communications technology (ICT) goods increased by 1.2% year-over-year to $16.7 billion in February, with strong demand from the U.S., Taiwan, and India offsetting weaker shipments to China, the EU, and Japan. The country also recorded a $5.8 billion trade surplus in ICT, driven by solid performances in mobile phones, computers, and communications equipment. Meanwhile, auto exports surged 17.3% year-over-year to 232,978 units, reaching a record $6.1 billion in value, fueled by rising demand in the EU and the Middle East and a 61.7% jump in hybrid electric vehicle exports.
Investor sentiment also benefited from positive corporate developments. LG AI Research, a subsidiary of LG Corporation, unveiled its open-source AI model, EXAONE Deep, which outperformed global peers in mathematics, science, and coding. The model’s recognition by Epoch AI’s Notable AI Models list further bolstered LG Corporation’s stock, which closed 2% higher.
Looking ahead, South Korea’s equity market could maintain its upward trajectory if semiconductor and auto sector tailwinds persist. However, challenges such as weakening demand from China and global trade uncertainties remain key risks. A sustained breakout in Kospi above key resistance levels would indicate stronger bullish sentiment, while any reversal in export growth or semiconductor recovery could introduce downside risks.
South Korean stocks advanced for the third consecutive session on Wednesday, supported by strong performances in the technology and steel sectors. The benchmark Kospi rose 0.62% to close at 2,628.62, while the Kosdaq fell 0.96% to 738.35. Market leaders Samsung Electronics and SK Hynix climbed nearly 2% and over 1%, respectively, reflecting renewed investor confidence in the semiconductor industry. Steelmaker Posco also posted a gain of more than 2%, contributing to the broader market's positive momentum.
The rally was underpinned by robust economic data. South Korea's exports of information and communications technology (ICT) goods increased by 1.2% year-over-year to $16.7 billion in February, with strong demand from the U.S., Taiwan, and India offsetting weaker shipments to China, the EU, and Japan. The country also recorded a $5.8 billion trade surplus in ICT, driven by solid performances in mobile phones, computers, and communications equipment. Meanwhile, auto exports surged 17.3% year-over-year to 232,978 units, reaching a record $6.1 billion in value, fueled by rising demand in the EU and the Middle East and a 61.7% jump in hybrid electric vehicle exports.
Investor sentiment also benefited from positive corporate developments. LG AI Research, a subsidiary of LG Corporation, unveiled its open-source AI model, EXAONE Deep, which outperformed global peers in mathematics, science, and coding. The model’s recognition by Epoch AI’s Notable AI Models list further bolstered LG Corporation’s stock, which closed 2% higher.
Looking ahead, South Korea’s equity market could maintain its upward trajectory if semiconductor and auto sector tailwinds persist. However, challenges such as weakening demand from China and global trade uncertainties remain key risks. A sustained breakout in Kospi above key resistance levels would indicate stronger bullish sentiment, while any reversal in export growth or semiconductor recovery could introduce downside risks.