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Kospi closes up 1.54% to maintain record streak

Published: 12 Sep. 2025, 17:31

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,395.54 points on Sept. 12, up 51.34 points, or 1.54 percent, from the previous trading session. [YONHAP]

Shares set a new record high Friday, extending their winning streak to a ninth session, buoyed by a rally of semiconductor shares and growing hopes for a U.S. Federal Reserve rate cut next week. The won was trading higher against the U.S. dollar.

The Kospi surged 51.34 points, or 1.54 percent, to close at 3,395.54, breaking the all-time high of 3,344.2 posted the previous day.

It marked the third consecutive day the Kospi set a new record high.

Trade volume was moderate at 444.9 million shares worth 13.8 trillion won ($9.9 billion), with winners outnumbering losers 521 to 344.

Foreigners net purchased local shares worth over 1.4 trillion won and institutions bagged 611.4 billion won, while retail investors unloaded 2 trillion won for profit taking.

"The Kospi's rally comes in line with the bullish U.S. stock markets buoyed by expectations of a Fed rate cut and the artificial intelligence (AI) boom," Han Ji-young, an analyst at Kiwoon Securities, said.

Overnight, major U.S. indexes closed higher, with the Dow Jones Industrial Average jumping 1.36 percent, the tech-heavy Nasdaq composite rising 0.72 percent, and the S&P 500 adding 0.85 percent.

Investor sentiment was boosted as the latest U.S. consumer price index (CPI) buoyed bets the Fed will move to cut key rates next week.

The CPI showed inflation is still above the Fed's 2 percent target but is calm enough to give a green light on cut rates, considering the weakness in the labor market.

Han also said hopes that the Korean government may withdraw its controversial capital gains tax hike proposal also boosted investors' risk appetite.

During a press conference marking his first 100 days in office, President Lee Jae Myung said there is no reason to push forward with his administration's initial plan to lower the capital gains tax threshold for stock investments, which had sparked concerns for local investors.

In Seoul, market bellwether Samsung Electronics jumped 2.72 percent to a yearly high of 75,400 won, and its chipmaking rival SK hynix shot up 7 percent to reach a record high of 328,500 won.

Internet portal operator Naver increased 1.29 percent to 236,000 won, and Kakao, the operator of the country's dominant mobile messenger, skyrocketed 9.35 percent to 65,500 won.

SK Square, an investment firm for the semiconductor and Information technology sectors, soared 8.35 percent to 197,300 won, while leading battery maker LG Energy Solution gained 1.57 percent to 355,500 won.

Instant noodle maker Nongshim escalated 6.97 percent to an all-time high of 522,000 won as exports surged thanks to the popularity of ramyeon featured in Netflix's global-hit animation film, "K-Pop Demon Hunters."

Major financial shares were also strong, with KB Financial up 1.45 percent to 119,300 won and Shinhan Financial rising 2.21 percent to 69,300 won.

Major shipbuilders, however, lost ground following a recent surge.

HD Hyundai Heavy slipped 1.35 percent to 510,000 won, HD Korea Shipbuilding dropped 1.54 percent to 416,500 won and Samsung Heavy pulled back 1.57 percent to 22,000 won.

Power plant manufacturer Doosan Enerbility dropped 1.8 percent.

The local currency was quoted at 1,388.2 won against the greenback at 3:30 p.m., down 0.26 percent from the previous session of 1,391.8 won.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys went up 1.1 basis points to 2.431 percent, while the return on the benchmark five-year government bonds added 0.7 basis points to 2.564 percent

Yonhap