Seoul market hits new high despite rate pause as regional peers falter

Graphics by AJP Song Ji-yoon

SEOUL, January 15 (AJP) - Korean stocks surged to fresh highs on Thursday, extending a 10-session winning streak, even as most other Asian markets finished mixed amid cautious regional sentiment.

In Seoul, the benchmark KOSPI jumped 1.58 percent to close at 4,797.6, edging closer to the symbolic 5,000-point mark. The tech-heavy KOSDAQ gained 1.0 percent to 951.2.

The rally was led by heavyweight technology and auto shares. Samsung Electronics climbed 2.6 percent to 143,900 won, closing at a new record high, while SK hynix rose 1.0 percent to 749,000 won, providing solid support to the broader market. Hyundai Motor advanced 2.6 percent to 422,000 won, extending its recent upward momentum.

The advance came despite a hawkish undertone from monetary authorities. The Bank of Korea unanimously voted to keep its benchmark interest rate unchanged at its first policy meeting of the year, extending a pause in place since May last year and signaling an effective end to the latest easing cycle. The Korean won weakened, with the dollar rising 4.1 won to 1,470.6.

Chipmakers benefited from renewed optimism over the global semiconductor cycle after Taiwan Semiconductor Manufacturing Co. reported record-breaking fourth-quarter results, offsetting concerns sparked by overnight weakness in U.S. technology stocks.

Industrial, robotics and defense-related shares also outperformed on stock-specific catalysts. POSCO DX surged 29.9 percent to 38,650 won after POSCO Group announced plans to expand industrial robot deployment at manufacturing sites in cooperation with Japan’s Yaskawa Electric. Hanwha Systems jumped 9.4 percent to 96,500 won, while Korea Zinc rose 11.5 percent to 1,438,000 won after the company said Chairman Choi Yoon-bum will attend the World Economic Forum in Davos to discuss global critical-minerals supply chains.

By contrast, internet heavyweight Naver slid 4.6 percent to 247,500 won after its affiliate Naver Cloud failed to pass the first round of screening to select South Korea’s indigenous artificial intelligence model.

Elsewhere in Asia, Japan’s Nikkei 225 slipped 0.4 percent to 54,110.5 as investors locked in profits following recent gains. China’s Shanghai Composite edged down 0.3 percent to 4,112.6, while Hong Kong’s Hang Seng Index fell 0.2 percent to 26,950.5.
Yoo Joonha Reporter joonhayoo94@ajupress.com

- Copyright ⓒ [아주경제 ajunews.com] 무단전재 배포금지 -