Trade talks, U.S. earnings push KOSPI higher

The KOSPI surged past 3,900 to a record high as reports of a U.S.-China summit coincided with stronger-than-expected earnings from major U.S. companies. The benchmark index closed at a two-day high, while Samsung Electronics and SK hynix together surpassed a combined market value of 1,000 trillion won.

According to the Korea Exchange on Oct. 24, the KOSPI rose 2.5 percent from the previous day to close at 3,941.59. It opened at 3,893.23, up 1.24 percent, and climbed to an intraday high of 3,951.07, surpassing the previous intraday record of 3,902.21 and the Oct. 22 closing high of 3,883.68.

Retail investors sold more than 2.03 trillion won in shares, but institutional and foreign investors bought net amounts of 1.41 trillion won and 575.5 billion won, respectively, lifting the index.

Samsung Electronics and SK hynix both advanced, driving their combined market value above 1,000 trillion won. Samsung rose 2.38 percent to 98,800 won, and SK hynix climbed 6.58 percent to 510,000 won, setting a new record.

Analysts said the rally reflected eased worries over U.S.-China trade tensions after the White House announced on Oct. 23 that President Donald Trump will meet Chinese President Xi Jinping on Oct. 30. Strong earnings from Intel and General Motors also lifted investor sentiment, with Wall Street’s three major indexes closing higher. The Dow Jones Industrial Average rose 0.31 percent to 46,734.61, the S&P 500 gained 0.58 percent to 6,738.44, and the Nasdaq Composite advanced 0.89 percent to 22,941.80.

Some analysts say the KOSPI could surpass 4,000 even if trade tensions resume. Jeong Hee-chan, a researcher at Samsung Futures, said the summit will help shape market direction through year-end, adding that eased tensions could support a rally, while renewed trade disputes could dampen sentiment.

Ahn Dong-hyun, an economics professor at Seoul National University, said the key factor will be foreign investors’ activity. He noted that if they perceive limited upside for the KOSPI, they may cut their holdings in the Korean market.


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