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Kospi ends nearly flat on U.S. inflation data expectations, Fed chair's remarks

Published: 25 Sep. 2025, 17:46

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,471.11 points on Sept. 25, down 1.03 points, or 0.03 percent, from the previous trading session. [YONHAP]

Shares closed almost flat on Thursday amid caution ahead of U.S. inflation data due later this week and concerns of stock market overheating. The won was trading lower against the dollar.

The benchmark Kospi lost 1.03 points, or 0.03 percent, to close at 3,471.11.

Trade volume was moderate at 289 million shares worth 12.4 trillion won ($8.9 billion), with losers outnumbering winners 533 to 335.

Retail investors unloaded local shares worth 541 billion won on profit taking, while foreigners and institutions purchased 184.5 billion won and 268.7 billion won, respectively.

Overnight, Wall Street finished lower following recent gains, after U.S. Federal Reserve Chair Jerome Powell said "equity prices are fairly highly valued" and the Fed is watching the impact of its policies on the overall financial conditions.

He also said the United States is seeing "unusually large" amounts of economic activity through the AI build-out, sparking concerns of an AI bubble.

"With the global AI momentum and tailwinds from the semiconductor industry, which had driven the Kospi's recent rally, passing a short-term peak, the index is now showing clear signs of a breather," said Lee Kyoung-min, an analyst at Daishin Securities.

Lee noted uncertainties rose ahead of the planned release of the U.S. Personal Consumption Expenditures Price Index, a key gauge of inflation, on Friday and amid ongoing trade negotiations between Seoul and Washington.

Investors were also paying attention to the recent weakness of the won, which slumped to a two-month low against the dollar.

In Seoul, market bellwether Samsung Electronics rose 0.82 percent to 86,100 won, while its chipmaking rival SK hynix lost 0.28 percent to 356,500 won.

Leading battery maker LG Energy Solution soared 3.88 percent to 361,500 won and its smaller rival Posco Future M jumped 5.42 percent to 145,900 won.

Internet portal operator Naver shot up 11.4 percent to 254,000 won on news that the company is pushing to acquire Dunamu, the operator of Korea's largest cryptocurrency exchange, as a wholly owned subsidiary in a push to expand into the digital finance sector.

Kakao, the operator of the country's top mobile messenger, also increased 0.64 percent to 63,200 won.

On the other hand, bio giant Samsung Biologics dipped 2.29 percent to 1.02 million won and power plant manufacturer Doosan Enerbility slipped 2.88 percent to 64,000 won.

AI investment firm SK Square shrank 2.99 percent to 211,000 won.

Defense firms also lost ground, with industry leader Hanwha Aerospace down 0.95 percent to 1.05 million won and Hyundai Rotem dropping 4.17 percent to 218,500 won.

The local currency was quoted at 1,400.6 won against the greenback at 3:30 p.m., up 0.22 percent from the previous session's quote of 1,397.5 won.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 3.9 basis points to 2.528 percent, and the return on the benchmark five-year government bonds added 4.4 basis points to 2.673 percent.

Yonhap