South Korean shares post biggest gain in nearly a month on US rate cut hopes

Published on 08/05/2025 at 02:56 am EDT

• KOSPI rises, foreigners net buyers
• Korean won weakens against dollar
• South Korea benchmark bond yield falls

(Reuters) - Round-up of South Korean financial markets:
** South Korean shares posted their biggest daily gain in nearly a month on Tuesday, as U.S. rate cut hopes fuelled risk appetite across global financial markets.
** The benchmark KOSPI closed up 50.25 points, or 1.60%, at 3,198.00, marking its biggest percentage rise since July 8.
** All three major U.S. stock indexes scored their biggest daily percentage gains since May 27 on Monday, as investors snapped up bargains after the previous session's selloff and increased bets on a September interest rate cut following weaker-than-expected jobs data released on Friday.
** "The market rose on a near-100% possibility of a September rate cut," said Seo Jung-hun, an analyst at Samsung Securities.
** At home, investor focus centred on the South Korean government's proposal announced last week to raise taxes on stock investments, amid speculation that the plan could be revised following a market rout on Friday.
** Among index heavyweights, chipmaker Samsung Electronics rose 0.29%, while peer SK Hynix gained 2.13%. Battery maker LG Energy Solution climbed 2.93%.
** Hyundai Motor and sister automaker Kia Corp were down 0.24% and 1.36%, respectively. Steelmaker POSCO Holdings added 2.76%, while drugmaker Samsung BioLogics rose 0.29%.
** Of the total 934 traded issues, 687 shares advanced, while 190 declined.
** Foreigners were net buyers of shares worth 291.9 billion won ($210.31 million).
** The won was quoted at 1,388.3 per dollar on the onshore settlement platform, 0.13% lower than its previous close at 1,386.5.
** In money and debt markets, September futures on three-year treasury bonds gained 0.02 point to 107.41.
** The most liquid three-year Korean treasury bond yield rose by 0.3 basis point to 2.425%, while the benchmark 10-year yield fell by 2.0 basis points to 2.760%. ($1 = 1,387.9500 won)
 (Reporting by Jihoon Lee; Editing by Janane Venkatraman) 

Sumber : Reuters