South Korean equities advanced for a fourth straight session this past week, with the benchmark KOSPI closing modestly higher as strength in technology and industrials outweighed caution ahead of key US economic data.
The index ended Sept 5 at 3,205.12 points, up 0.13%, capping a steady rebound that began after a subdued start on Sept 1. For the week, the KOSPI climbed about 2%, supported by sustained foreign inflows and a rotation into cyclical sectors.
Markets opened September cautiously, with the KOSPI at 3,142.93 on Sept 1 amid mixed global signals. A rebound followed on the next day, when the benchmark jumped nearly 1% to 3,172.35, driven by renewed earnings optimism. Gains extended midweek, with the index rising to 3,184.42 on Sept 3 as semiconductor, pharmaceutical and nuclear-related stocks saw heavy buying.
By Sept 5, investors largely stayed on the sidelines ahead of the US nonfarm payrolls report, but selective buying in chipmakers and exporters kept the market in positive territory. Analysts noted that optimism around US rate-cut prospects, combined with South Korea’s strong export performance, has underpinned sentiment in recent sessions.
Still, foreign investors remained net sellers through parts of the week, highlighting continued caution over global growth and geopolitical risks. Domestic institutional support, however, helped balance flows and provided a floor for the market.
Looking ahead, traders are expected to focus on US monetary policy cues and China’s growth trajectory, both of which carry significant implications for Korean exporters. With the index maintaining upward momentum, market watchers suggest the KOSPI could continue to test higher levels if foreign flows turn supportive.
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