On a Monday morning in Seoul, Korean stocks climbed to their highest point in four months, carried on the back of a quiet disappointment far away across the Pacific. A slowdown in American hiring had eased the fear that interest rates would soon rise, and so investors leaned back toward risk, buying shares and the won alike. It is the familiar rhythm of a connected world, where a weaker jobs report in Washington can lift a market on the other side of the globe, and where the calm of a rally always carries the question of how long it will last.
Korean Shares Hit Four-Month High as Weak U.S. Jobs Data Eases Rate Fears
Soft U.S. hiring suggested borrowing costs could stay low for longer
Mark
Why would bad jobs news send stocks to a four-month high?
Mimi
Because weak hiring suggests U.S. interest rates may stay low for a long time, and that makes investors more willing to take risks.
Mark
Wall Street had already reacted by Friday's close.
Mimi
Yes, the Dow and S&P 500 both closed at records, and Seoul picked up that mood on Monday.
Luke
Worth noting this is a midday snapshot, as of 0208 GMT. The closing level could look different.
Mark
Were the gains driven by a few giant stocks?
Mimi
Not really. Samsung rose 0.73%, SK Hynix 0.39%, Naver 0.42%, and LG Chem fell 0.54%. The moves were small.
Luke
So the report shows a broad index gain, but it doesn't explain what drove each stock.
Mark
What about the foreign money?
Mimi
Foreigners bought a net 125.3 billion won of shares, about $112 million.
Luke
That's one session's figure. It says nothing yet about a lasting trend.
Mark
And the bonds?
Mimi
The three-year yield fell to 1.129% while the 10-year rose to 2.136%, so they didn't move together.
El Pulso
- The KOSPI jumped 1.31% to 3,239.20, its strongest intraday level since January 11, and was on track for a fourth straight daily gain.
- Weak U.S. job growth on Friday stirred hopes that interest rates would stay low, pushing investors toward riskier bets.
- Foreign buyers poured in 125.3 billion won, a decisive vote of confidence that gave the rally real momentum.
- The won strengthened to 1,115.0 per dollar, while the 10-year bond yield edged up, leaving markets watching whether the rally can hold.
On a Monday morning in Seoul, Korean stocks climbed to their highest point in four months, carried on the back of a quiet disappointment far away across the Pacific. A slowdown in American hiring had eased the fear that interest rates would soon rise, and so investors leaned back toward risk, buying shares and the won alike. It is the familiar rhythm of a connected world, where a weaker jobs report in Washington can lift a market on the other side of the globe, and where the calm of a rally always carries the question of how long it will last.
By mid-morning in Seoul, the KOSPI stood at 3,239.20, up 1.31% and at its highest level since January 11. It was heading for a fourth consecutive daily gain, and the mood in the trading rooms had turned noticeably lighter.
The lift came from across the Pacific. On Friday, U.S. job growth slowed more than expected, easing worries that interest rates might climb sooner than anyone had planned. Wall Street read the news as good, and both the Dow and the S&P 500 closed at record highs. Seoul, reopening after that session, followed with a stronger appetite for risk.
The gains were broad rather than dramatic. Samsung Electronics and SK Hynix rose modestly, and foreign investors bought 125.3 billion won in shares, a clear sign that outside money was willing to come back. The won firmed to 1,115.0 per dollar, while bond yields told a mixed story, with the 10-year rising even as shorter-term yields eased.
The logic of the day was simple: slower hiring suggested cheap borrowing might last longer, and investors acted on that hope. Whether the four-session run can hold through the rest of the week is the question now hanging over the market.
By the middle of Monday's session in Seoul, the KOSPI stood at 3,239.20, up 42 points, or 1.31%, as of 0208 GMT. That was its highest intraday level since Jan. 11, and the index was on course for a fourth consecutive daily gain.
The push came from Washington's side of the Pacific. On Friday, U.S. job growth slowed unexpectedly, which eased worries that interest rates might have to rise sooner than expected. Wall Street took it as good news: both the Dow and the S&P 500 finished at record closing highs. Seoul's market, reopening after that session, followed with a stronger appetite for risk.
Among the biggest names on the board, the moves were modest. Samsung Electronics gained 0.73% and chipmaker SK Hynix added 0.39%. Internet company Naver rose 0.42%, while LG Chem slipped 0.54%. The index's rise was therefore not a story of one stock surging but of a broad lift.
Foreign investors were part of it. They were net buyers of 125.3 billion won worth of shares on the main board, equal to about $112.39 million.
The currency moved in the same direction. On the onshore settlement platform the won was quoted at 1,115.0 per dollar, 0.57% stronger than its previous close of 1,121.3. Offshore, the won traded at 1,114.5 per dollar, down 0.3% from the previous day, and the one-month non-deliverable forward contract was quoted at 1,114.0. The dollar conversion used in the report was 1,114.88 won.
In the bond market, the picture was mixed. June futures on three-year treasury bonds rose 0.04 points to 110.90. The most liquid three-year Korean treasury bond yield fell 0.8 basis points to 1.129%, while the benchmark 10-year yield rose 1.3 basis points to 2.136%.
The day's logic was simple: soft U.S. hiring suggested borrowing costs could stay low for longer, and investors responded by buying stocks and the won. What remains to be seen is whether the four-session run holds as the week continues.
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