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South Korean shares turn higher on dip buying after strong exports

By · Published by Everything Blog

In short

The benchmark KOSPI rebounded by 0.34% as investors moved in to purchase discounted equities following the record-breaking export data. Market gains came despite a domestic manufacturing survey showing factory activity expanding at its slowest pace in eight months amid softening production. Performance among market heavyweights diverged, with chipmaker SK Hynix gaining ground while sector peer Samsung Electronics slipped.

Key points

  • Global appetite for AI computer chips remains the primary catalyst supporting South Korea…: Global appetite for AI computer chips remains the primary catalyst supporting South Korea's export growth.
  • Domestic manufacturing faces near-term headwinds from decelerating factory production des…: Domestic manufacturing faces near-term headwinds from decelerating factory production despite the historic trade boom.
  • Government policy is directly targeting AI development to offset broader economic cooling…: Government policy is directly targeting AI development to offset broader economic cooling and support market sentiment.

Sources checked by our analysis pipeline: 1

* KOSPI rises, foreigners net sellers

* Korean won weakens against dollar

* South Korea benchmark bond yield rises

SEOUL, Nov 2 (Reuters) - A round-up of South Korean financial markets:

** South Korean shares recovered early losses to turn higher on Monday, as strong exports fuelled dip-buying sentiment.

** The benchmark KOSPI was up 19.49 points, or 0.34%, at 5,750.23 as of 0157 GMT, after falling nearly 2% earlier in the session.

** The index opened lower, tracking Wall Street's losses on worries about AI-related companies' massive spending on the nascent technology.

** "The stock market is again in over-sold territory, and fundamentals are solid with earnings forecasts improving," said Han Ji-young, an analyst at Kiwoom Securities.

** "October exports' surprise also boosts the possibility of additional upward revisions to earnings consensus," Han said.

** South Korea's exports nearly doubled in October, the sharpest jump in more than 50 years, as robust global demand for AI investment boosted shipments of the country's chips.

** South Korea's factory activity grew in October at the slowest pace in eight months on…

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