FX.co ★ South Korean Shares Hit Fresh Record on Auto Gains

On Monday, the benchmark KOSPI index climbed by 0.7%, reaching approximately 4,875, and achieving new record highs. This upward trend was primarily driven by strong performances in the automotive sector. Notably, Hyundai Motor and Kia experienced significant increases of 7.4% and 3.4%, respectively, after attaining a remarkable combined 11.3% market share in the US auto market by 2025. Investor sentiment was buoyed by the company’s resilience against US tariff pressures, attributed to enhanced local production capabilities, a versatile manufacturing strategy, and a surge in hybrid vehicle sales. The index's positive trajectory also benefited from the robust momentum carried over from last week's record close. This momentum was supported by strategic institutional and foreign investor positioning, positive outlooks on forthcoming earnings, and a general strength observed across cyclical sectors. Additional upward movements were noted in SK Hynix (0.7%), Hanwha Aerospace (2.2%), HD Hyundai Heavy Industries (2.9%), Hyundai Mobis (2.7%), and Hanwha Ocean (1.0%). However, semiconductor shares displayed mixed results due to profit-taking at higher levels and ongoing uncertainties surrounding possible US chip tariffs.