KOSPI Soars To New Record High On Chip Rally, US Rate Cut Hopes

(MENAFN- IANS) Seoul, Sep 12 (IANS) South Korean stocks set a new record high on Friday, extending their winning streak to a ninth session, buoyed by a rally of semiconductor shares and growing hopes for a US Federal Reserve rate cut next week. The Korean won was trading higher against the US dollar.

The benchmark Korea Composite Stock Price Index (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, reports Yonhap news agency.

Trade volume was moderate at 444.9 million shares worth 13.8 trillion won (US$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 for it to give the green light to 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 IT 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 a 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.

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