FX.co ★ South Korean Shares Rally on Risk-On Mood

The KOSPI Composite Index surged almost 3%, reaching above 4,050 on Monday, effectively recouping over half of the previous week's losses. This uptick was driven by improved global risk sentiment, sparked by anticipation of a resolution to the record-long US government shutdown. In the prior week, global equities were pressured, particularly in the technology sector, due to growing concern over inflated AI valuations. However, at the beginning of the week, those apprehensions seemed to diminish, attracting bargain hunters. The advance was spearheaded by chipmakers and AI-related equities, with notable performances from SK Hynix (5.1%), Samsung Electronics (2.4%), and Koh Young Technology (10.6%). Financial entities also supported the upward momentum, with KB Financial climbing 4.3%, Shinhan Financial up 2.7%, and Mirae Asset Securities gaining 3.5%. Nevertheless, South Korea’s market remains susceptible to increased volatility, as margin lending reached a historic peak last week.