Seoul shares spike to 11-month high on hopes for policy backup

Seoul, June 9 South Korean stocks rallied to their highest level in 11 months on Monday, driven by gains in chip shares amid hopes for new policy measures under the Lee Jae-myung government and upcoming trade talks between the United States and China. The local currency strengthened to an eight-month high against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 43.72 points, or 1.55 percent, to close at 2,855.77, extending its winning streak to a fourth straight session, reports Yonhap news agency.

It marked the highest level since July 16, 2024, when the index finished at 2,866.09.

Trade volume was heavy at 528.24 million shares worth 13.61 trillion won (US$10.03 billion), with winners beating losers 700 to 200.

Foreign investors bought a net 980.0 billion won worth of stocks, while individuals and institutions sold 229.67 billion won and 721.53 billion won worth of stocks, respectively.

The index opened markedly higher and maintained its momentum, as investors harboured hopes for eased global trade tensions ahead of a meeting between senior U.S. and Chinese officials set to take place in London later in the day.

Expectations have also risen for a set of measures by the Lee government aimed at bolstering the economy.

During telephone talks on Friday, Lee and U.S. President Donald Trump agreed to work toward a "mutually satisfactory" agreement on the U.S.' sweeping tariff scheme, Seoul's presidential office said.

Semiconductor and auto shares led the upturn of the index. Market bellwether Samsung Electronics rose 1.18 percent to 59,800 won, and its rival SK hynix advanced 2.0 percent to 229,000 won.

Top carmaker Hyundai Motor surged 4.32 percent to 197,800 won, and its sister Kia Motors jumped 2.36 percent to 95,300 won.

Leading biotech firm Samsung Biologics advanced 1.37 percent to 1.03 million won, and Celltrion gained 1.97 percent to 160,200 won.

Leading financial firm KB Financial soared 4.14 percent to 110,700 won, and No. 1 steelmaker POSCO Holdings grew 0.39 percent to 258,000 won.

Top online portal operator Naver increased 3.82 percent to 198,500 won, and Kakao, the operator of the country's dominant mobile messenger, spiked 16.03 percent to 51,400 won.

But major battery maker LG Energy Solution sank 2.06 percent to 285,000 won, and defence giant Hanwha Aerospace dipped 2.76 percent to 880,000 won.

The local currency was quoted at 1,356.4 won against the greenback at 3:30 p.m., up 2.0 won from the previous session. It marked the highest level since Oct. 14, 2024, when the won was quoted at 1,355.9 won to the dollar.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.7 basis point to 2.405 percent, and the return on the benchmark five-year government bonds lost 2.7 basis points to 2.570 percent.

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