Seoul Stocks Open Higher, Tracking Wall Street Gains as Oil Prices Ease
Key Takeaways
- •The KOSPI traded up 0.57 percent at 6,600.4 as of 9:15 a.m. Thursday after opening 1.33 percent higher, rebounding from a 3.99 percent drop in the prior session.
- •The rally followed overnight Wall Street gains, with the Dow rising 0.56 percent and the Nasdaq gaining 0.45 percent, while oil prices eased after Trump downplayed a prolonged conflict with Iran.
- •Tech stocks led the advance: Samsung Electronics rose 1.2 percent, SK hynix climbed 1.05 percent, Hyundai Motor gained 0.13 percent, and LG Energy Solution added 1.29 percent.
- •SK Innovation fell 3.5 percent and SK Telecom declined 2.74 percent, as easing oil prices pressured energy-related shares.
- •The Korean won weakened 3 won to 1,362.2 per dollar, a level that affects overseas earnings of exporters like Samsung and Hyundai.
Seoul shares opened higher Thursday, tracking overnight gains on Wall Street, while oil prices eased after U.S. President Donald Trump played down the prospect of a prolonged conflict with Iran.
The benchmark Korea Composite Stock Price Index (KOSPI) opened 1.33 percent higher before trimming its gains, trading up 37.68 points, or 0.57 percent, at 6,600.4 as of 9:15 a.m.
The previous session had seen the main index plunge 3.99 percent to 6,562.72, driven by concerns over tensions in the Middle East and the possibility of further interest rate hikes by the U.S. Federal Reserve. The rebound follows a familiar pattern for Korean markets, which often take their cue from U.S. trading because Wall Street's overnight direction shapes global risk sentiment and foreign investor flows into Seoul-listed shares.
On Wall Street overnight, the Dow Jones Industrial Average rose 0.56 percent, while the tech-heavy Nasdaq composite gained 0.45 percent.
Trump said renewed U.S. attacks on Iran would likely be short-lived, easing concerns about inflation. Oil prices are closely watched by Korean investors because the country relies on imported crude for nearly all of its energy needs, and higher oil prices can feed into consumer prices and squeeze margins at exporters and refiners alike.
In Seoul, tech stocks led the morning's gains. Market bellwether Samsung Electronics rose 1.2 percent, and its chipmaking rival SK hynix climbed 1.05 percent. Top carmaker Hyundai Motor gained 0.13 percent, and leading battery maker LG Energy Solution added 1.29 percent. Semiconductors and large-cap technology names carry heavy weight in the KOSPI, so their strength tends to drive the broader index's direction.
Among decliners, leading refiner SK Innovation fell 3.5 percent, while leading wireless services provider SK Telecom declined 2.74 percent. The refiner's drop came as easing oil prices weighed on energy-related shares, reversing some of the gains such stocks often see when crude prices climb.
The Korean won was quoted at 1,362.2 against the U.S. dollar as of 9:15 a.m., down 3 won from the close of the previous stock trading session. The currency's level matters for exporters such as Samsung and Hyundai, whose overseas earnings are affected by exchange-rate movements when converted back into won.
Source: The Korea Times
