South Korean shares hit 20-month high on chip boost, policy optimism
South Korean shares rose more than 1% on Monday to their highest level since May 2022, as chipmakers jumped and foreign buying continued on optimism around the government's corporate reform plan.
** The benchmark KOSPI closed up 31.50 points, or 1.19%, at 2,680.26 — its highest level since May 31, 2022.
** Foreigners were net buyers of shares worth 607.6 billion won ($455.10 million) in their 18th session of buying out of the last 20 sessions. In the other two, their sales were by just small margins.
** South Korea will soon announce a programme to boost the value of Seoul-listed companies, which includes tax incentives, to encourage higher shareholder returns, the finance minister said on Friday.
** «It is unlikely policy optimism will go away before the announcement,» said Cho Jun-kee, an analyst at SK Securities.
** Investor focus is now on U.S. chipmaker Nvidia's earnings and China's interest rate policy this week. The Bank of Korea will have its second rate decision meeting for this year on Thursday.
** Among index heavyweights, chipmaker Samsung Electronics rose 1.37% and peer SK Hynix gained 3.07%, but battery maker LG Energy Solution slid 3.05%.
** The Korea Exchange Bank Index rose 2%. Financial stocks have recently seen huge inflows of foreign money, as lead gainers benefiting from the government's push to boost undervalued stocks.
** Of the total 935 traded issues, 619 shares advanced, while 263 declined.
** The won ended onshore trade at 1,335.2 per dollar, 0.01% higher than its previous close
