The benchmark KOSPI climbed nearly 1% to around 6,870 on Friday, extending gains to its highest level in more than three weeks as strong US equities and semiconductor shares bolstered investor sentiment. The S&P 500 notched a new record high after US producer prices were unchanged in July, defying expectations for an increase. The softer inflation reading eased worries about accelerating price pressures and tempered expectations for further Federal Reserve tightening.
The improved risk appetite supported Asian technology stocks, with SK hynix advancing more than 3%. Other notable gainers included SK Square (up 1.7%), Hyundai Motor (5.5%), HD Hyundai Heavy Industries (1.8%), Kia Corporation (2.1%), and Hyundai Mobis (3.5%).
At the same time, the United States imposed a 15% tariff on South Korean drones and related components and classified South Korea as a Tier 1 economy exposed to transshipment risks involving China-linked goods, introducing a potential new headwind for the country’s exporters.
