Seoul shares end at nearly 2-year high on financial, auto gains

Korean stocks finished higher for the third straight session to hit an almost 2-year high Thursday on the back of gains in financial, auto and other blue chips. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 25.19 points, or 0.94 percent, to 2,718.76. It marked the highest since April 22, 2022, when the index finished at 2,704.71 points.

Trade volume was heavy at 587 million shares worth 13.5 trillion won ($10.24 billion), with winners beating losers 508 to 365.

Institutions and foreign investors led the overall gains, buying a net 863 billion won worth of shares, while retail investors took profit.

Market watchers attributed the KOSPI’s upward momentum largely to financial shares’ upward march.

“The KOSPI apparently rose amid increased expectations for shareholder returns in the financial sector, as the regular corporate shareholders’ meeting season has neared,” Lee Jae-won, an analyst at Shinhan Investment & Securities, said.

The latest monthly U.S. producer price index data scheduled to be announced later in the day will serve as a key factor in determining the future direction of the market, watchers said.

Financial shares continued to advance despite having performed strong in the past two sessions. Shinhan Financial surged 8.19 percent to 51,500 won, and KB Financial jumped 1.42 percent to 78,600 won.

Automakers also enjoyed brisk trading, with industry leader Hyundai Motor rising 1.21 percent to 251,000 won and its affiliate Kia also adding 2.07 percent to end at 128,500 won.

Tech behemoth Samsung Electronics gained 0.27 percent to finish at 74,300 won, and home appliance LG Electronics jumped 1.74 percent to 99,300 won.

Secondary battery makers, however, lost ground following a plunge in U.S. electric vehicle maker Tesla overnight. LG Energy Solution fell 0.60 percent to 416,000 won, and Samsung SDI shed 2.94 percent to end at 446,000 won.