South Korean shares hit near 4-year high on market reform hopes
South Korean benchmark rose to their highest level in nearly four years on Monday, driven by financial stocks on market reform hopes.
The benchmark KOSPI ended the session up 26.28 points, or 0.83%, at 3,202.05, its highest closing level since September 6, 2021.
'Korea remains a key overweight market for us in Asia/Emerging Market and we continue to recommend adding on any volatility as long as the reform process remains on track,' J.P.Morgan said in a note dated July 11, adding that the KOSPI could hit 5,000 in two years.
The outlook convinces that the new administration's capital market reforms are on the right track, the ruling Democratic Party said on Monday, referring to the note.
It has been President Lee Jae Myung's 'KOSPI 5,000' pledge to bring various reforms to make domestic financial markets more attractive.
South Korea's top trade envoy said it may be possible to strike an 'in-principle' trade deal with the U.S. by the August 1 deadline, and signalled Seoul may be open to allow greater access to its agriculture markets, local media reported.
South Korean shares rise on Nvidia-driven chip rally, central bank decision
Financial groups jumped 2.46%, while securities firms rose 1.83%.
Among index heavyweights, chipmaker Samsung Electronics fell 0.16%, while peer SK Hynix gained 1.87%. Battery maker LG Energy Solution slid 2.02%.
Hyundai Motor and sister automaker Kia Corp were up 4.33% and up 2.18%, respectively. Steelmaker POSCO Holdings added 0.16%, while drugmaker Samsung BioLogics fell 1.42%.
Foreigners were net buyers of shares worth 348.3 billion won ($252.21 million).
The won was quoted at 1,381.2 per dollar on the onshore settlement platform, 0.39% lower than its previous close at 1,375.8.
The most liquid three-year Korean treasury bond yield rose by 2.3 basis points to 2.470%, while the benchmark 10-year yield rose by 5.1 basis points to 2.881%.
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