KOSPI Surges Past 4,130 on Santa Rally Hopes, But Banks and Autos Stumble

It’s a tale of two markets in Seoul. South Korea's benchmark KOSPI index surged on hopes of a year-end “Santa Claus rally,” but a closer look reveals a split personality as auto and financial stocks stumbled. In the first 15 minutes of trading on December 26, the index added 22.97 points, or 0.56%, to reach 4,131.59, tracking pre-Christmas gains on Wall Street fueled by renewed confidence in the U.S. economy.

Tech and AI Lead the Charge

The market's advance was powered by a strong showing in the tech sector. Tech giant Samsung Electronics kicked off 2.88% higher, while its chipmaking rival SK hynix increased by 1.02%. Demonstrating the intense investor interest in artificial intelligence, AI investment firm SK Square soared 3.74%. Major shipbuilders HD Hyundai Heavy and Hanwha Ocean also started in positive territory, rising 0.39% and 1.43%, respectively.

On the flip side, several key sectors faced headwinds. Leading battery maker LG Energy Solution went down 0.51%. Auto and financial shares also started in the red. Hyundai Motor edged down 0.09% and its affiliate Kia fell 0.21%, while KB Financial and Shinhan Financial lost 1.35% and 1.41%, respectively.

Sponsored

Advertise with Us

[email protected]

Sponsored

Global Cues and Currency Watch

The positive sentiment stemmed from the U.S., where the Dow Jones Industrial Average added 0.6% and the tech-heavy Nasdaq rose 0.22%. According to Yonhap, the U.S. Volatility Index (VIX), known as the fear index, fell to 13.4 points, its lowest mark this year. However, a weaker local currency could weigh on foreign investment. The Korean won was trading at 1,453.2 won against the U.S. dollar, down 3.4 won from the previous session.