On a Monday in mid-February 2021, South Korea's stock market returned from the Lunar New Year break and found the world had moved on without it. The benchmark KOSPI rose to near a three-week high, carried by early-month export figures that had surged and by chip shares drawing foreign money on the strength of distant American gains. It is the familiar rhythm of a trading nation, pausing for its own festival and then rejoining a global current, hopeful that the momentum it finds on its return will carry it forward.
South Korean Stocks Climb to Near Three-Week High on Strong Export Data and Wall Street Rally
A market that sat out two days returned to find the world had moved on without it
Mark
Why does a 1.56% move on one morning deserve attention?
Mimi
Because it came after a two-day closure. Markets elsewhere kept moving, so Monday absorbed all of it at once: Wall Street records, a chip index up over 5%, and the export numbers.
Mark
The export figure is 69.1%. That's huge.
Mimi
It is, and it's a comparison with a year earlier, covering only the first 10 days of February. Customs attributed it to stronger sales of major products and overseas demand.
Luke
I'd add that a ten-day window is short, and the holiday timing can distort year-on-year comparisons. The source doesn't say how much of that is calendar effect. I wouldn't read it as a full-month trend.
Mark
What about the chip stocks leading?
Mimi
Samsung Electronics rose 3.2% and SK Hynix 4.4%. An analyst at Kiwoom, Seo Sang-young, tied it to foreign buying after the Philadelphia semiconductor index jumped.
Luke
That's one analyst's explanation of motives. The foreign net buying of 403.9 billion won is a fact, but why they bought is attributed, not confirmed.
Mark
And SK Innovation falling?
Mimi
That's a separate story. It lost a U.S. battery trade case to LG, and fell as much as 9.6% while LG Chem rose over 3%.
Luke
Worth noting the report doesn't say what the ruling's consequences are, only that the market reacted.
Mark
So what do we watch?
Mimi
Whether stimulus hopes and chip momentum last. Neither is settled yet.
Der Puls
- The KOSPI leapt 1.56% to 3,149.04 the moment trading resumed after a two-day holiday closure.
- Exports in the first ten days of February surged 69.1%, giving traders a fresh reason to chase shares higher.
- Foreign investors poured money into chip stocks as Samsung Electronics and SK Hynix led the charge.
- SK Innovation sank as much as 9.6% after losing a U.S. battery trade case to rival LG, a sharp reminder that gains are not evenly shared.
- The rally now rests on whether U.S. stimulus hopes and semiconductor strength can outlast the first days of the month.
On a Monday in mid-February 2021, South Korea's stock market returned from the Lunar New Year break and found the world had moved on without it. The benchmark KOSPI rose to near a three-week high, carried by early-month export figures that had surged and by chip shares drawing foreign money on the strength of distant American gains. It is the familiar rhythm of a trading nation, pausing for its own festival and then rejoining a global current, hopeful that the momentum it finds on its return will carry it forward.
When South Korea's markets reopened on Monday, February 15, after the Lunar New Year closure, investors came back to a world that had kept moving. Wall Street had closed at record highs the week before, and the trade agency had just reported that exports in the first ten days of February had jumped 69.1% from a year earlier. Traders saw that as a green light.
The benchmark KOSPI climbed 1.56% to 3,149.04, its highest since January 27. Samsung Electronics gained 3.2% and SK Hynix rose 4.4%, while Naver and Samsung SDI also advanced. Much of the lift came from chips, as foreign buyers returned to semiconductor shares after the U.S. Philadelphia chip index rallied more than 5% during the holiday.
Not everyone celebrated. SK Innovation fell as much as 9.6% to its lowest level in over three weeks after losing a U.S. battery dispute to LG, which itself rose more than 3%. The won strengthened slightly against the dollar, and government bond yields barely moved.
The rally rests on two supports: foreign appetite for chip stocks and hopes for U.S. stimulus. Whether export strength continues past the opening days of the month will determine how long this rally lasts.
When South Korea's stock market reopened on Monday, February 15, after a two-day closure for the Lunar New Year, the benchmark KOSPI index jumped. By 0207 GMT it had climbed 48.46 points, or 1.56%, to 3,149.04. That was its highest level since January 27, close to a three-week peak.
The market had been shut on Thursday and Friday for the holiday. Investors returned to find that a lot had happened elsewhere in the meantime. Wall Street had closed at record highs the previous week, and South Korea's customs agency had released preliminary trade figures that gave traders a reason to buy.
Those figures showed exports in the first 10 days of February up 69.1% from a year earlier. The agency attributed the surge to stronger sales of major export products and robust overseas demand.
Most of the market's heavyweights rose. Samsung Electronics gained 3.2% and SK Hynix rose 4.4%. Internet company Naver was up 4.1% and battery maker Samsung SDI added 2.2%. Chips carried much of the load. Seo Sang-young, an analyst at Kiwoom Securities, said hopes for U.S. stimulus and strong semiconductor shares were pulling the KOSPI higher. He noted that foreign investors were buying chip stocks after the U.S. Philadelphia semiconductor index rose more than 5% during the Korean holiday.
Foreigners were net buyers of 403.9 billion won (about $365.89 million) of shares on the main board.
Not every stock moved with the tide. SK Innovation, the electric vehicle battery maker, fell as much as 9.6% to a low not seen in more than three weeks. The drop followed SK's loss to rival LG in a U.S. battery trade case the previous week. LG Chem, on the other side of that dispute, rose more than 3%.
Currency and bond markets also moved. The won was quoted at 1,104.0 per dollar on the onshore settlement platform, 0.27% stronger than its previous close of 1,107.0. Offshore, it traded at 1,103.9, and the one-month non-deliverable forward contract was quoted at 1,103.3. The most liquid three-year Korean treasury bond yield edged up 0.2 basis point to 0.998%.
The session's momentum rested on two supports: foreign appetite for chip shares and hopes for U.S. stimulus. Whether those hold, and whether export strength continues beyond the first ten days of the month, will shape how long this rally lasts.
Bemerkenswerte Zitate
U.S. stimulus hopes and strong chip shares are towing KOSPI gains, with foreign investors buying chip stocks after the Philadelphia semiconductor index jumped over 5%.— Seo Sang-young, analyst, Kiwoom Securities
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