South Korea’s key stock index Kospi set an all-time high in a month on Monday, which was driven by vaccinations raising expectations for an economic recovery and stable U.S. Treasury yields.
Kospi rose 12.04 points, or 0.37 percent on the day, to a record close of 3,252.12, breaking the record (3,249.30) previously set on May 10. Kospi reached 3,264.41 at one point Monday afternoon, inching close to its highest-ever intraday level of 3,266.23 (Jan.11). Individual investors net purchased about 69.5 billion and institutional investors, which turned to buying in the afternoon, bought 118.1 billion won, leading the upturn. On the other hand, foreign investors sold about 187.4 billion won. Kosdaq fell 1.72 points, or 1.72 percent, to close at 985,86.
Concerns over early tapering (scaling back bond purchases) by the Federal Reserve were eased as U.S. non-farm payrolls in May released over the weekend were less than the market expectation. This has boosted the stock market as a result. In addition, with Korea speeding up COVID-19 vaccinations, expectations for an economic recovery have risen, fueling investors’ interest in risky assets. The 10-year U.S. Treasury yield, which surpassed the 1.7 percent mark in March, is hovering around the 1.5 percent mark in recent weeks.