Seoul shares closed higher Friday as investors regained confidence in the artificial intelligence sector, boosted by slower-than-expected U.S. inflation data. The local currency also strengthened slightly against the dollar.
Seoul's stock market ended higher on December 19 as investors regained confidence in the artificial intelligence sector, further encouraged by slower-than-expected U.S. inflation figures. The November U.S. consumer price index rose just 2.7 percent year-over-year, fueling hopes for a Federal Reserve rate cut despite partial data coverage from the government shutdown. This shift prompted a move toward riskier assets.
The benchmark Korea Composite Stock Price Index (KOSPI) added 26.04 points, or 0.65 percent, closing at 4,020.55. Trading volume was moderate at 426 million shares valued at 15.7 trillion won ($10.6 billion), with 604 gainers outnumbering 276 losers. Foreign investors net sold 799.5 billion won in shares, while institutions bought a net 858 billion won. Individuals offloaded a net 77.8 billion won.
Positive sentiment stemmed from U.S. chipmaker Micron Technology's earnings surpassing expectations, which alleviated fears of an AI bubble triggered by reports of Oracle's difficulties in funding its data centers. "The slower-than-expected U.S. CPI data has led to hope over a rate cut (by the Federal Reserve)," said Seo Sang-young, an analyst at Mirae Asset Securities.
Carmakers performed well, with Hyundai Motor up 2.21 percent to 288,500 won and Kia rising 0.5 percent to 121,000 won. Defense firm Hanwha Aerospace jumped 3.88 percent to 884,000 won. Naver gained 2.17 percent to 235,500 won, and Kakao added 1.93 percent to 58,200 won. However, Samsung Electronics fell 1.21 percent to 106,300 won, SK hynix dipped 0.91 percent to 547,000 won, and LG Energy Solution edged up 0.13 percent to 379,000 won.
The won closed at 1,476.3 against the dollar at 3:30 p.m., up 2 won from the prior session. Bond prices declined, with the three-year Treasury yield rising 4.3 basis points to 3.01 percent and the five-year note yield up 4.4 basis points to 3.24 percent.
