Key facts
- Seoul shares closed over 6 percent higher on Wednesday.
- The rally was led by gains in technology heavyweights.
- Cooler-than-expected U.S. inflation data lifted Wall Street overnight.
- Easing concerns about Federal Reserve interest rate hikes contributed to the positive sentiment.
- Persistent tensions in the Middle East remained a concern for investors.
- The Korean won strengthened against the U.S. dollar.
Seoul shares concluded Wednesday's trading session with a significant gain of over 6 percent, propelled by a rally in technology heavyweights. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 7,284.41, up 427.58 points, or 6.24 percent, after opening 3.3 percent higher.
This upward momentum was largely attributed to the release of cooler-than-expected U.S. inflation data, which bolstered Wall Street overnight and alleviated concerns regarding imminent interest rate hikes by the Federal Reserve. The Dow Jones Industrial Average saw a modest increase of 0.02 percent, while the tech-focused Nasdaq Composite advanced by 0.9 percent.
Despite the positive market sentiment driven by inflation data, persistent geopolitical tensions in the Middle East, particularly between the U.S. and Iran, continued to be a point of concern for investors. The Korean won also strengthened against the U.S. dollar during the trading session.
Institutional and foreign investors were net buyers of South Korean shares, acquiring 182.68 billion won (US$123 million) and 2.32 trillion won worth of stock, respectively. Conversely, retail investors offloaded a net 2.47 trillion won in shares.