KOSPI

South Korea Retail Sales Growth Eases to 1.6% in April

South Korea's retail sales increased 1.6% on an annual basis in April, slowing from 5.0% growth in the prior month, data from Statistics Korea showed on Friday.On a month-on-month basis, retail sales contracted 3.6%, reversing the 1.9% increase in March and marking the steepest drop since July 2020, according to the government data.

South Korea's Industrial Production Growth Slows to 2.4% in April

South Korea's industrial production grew 1.5% year over year in April, easing from a 3.9% increase in the previous month as output across most sectors moderated, according to data released by Statistics Korea on Friday.While activity in the construction sector remained in negative territory, albeit at a slower pace, yearly output growth in manufacturing and services slowed to 1.6% and 3.5% from 4.2% and 5.4%, respectively, while public administration growth accelerated to 2.9% from 2.4%, the data showed.On a seasonally adjusted basis, industrial production declined 0.7% in April, reversing the 0.6% monthly growth in March, Statistics Korea said.

Market Chatter: US, Iran Reach Tentative 60-Day Ceasefire Extension

The U.S. and Iran have tentatively agreed to extend a ceasefire for two months while initiating new negotiations over Tehran's nuclear program, fueling optimism that the ongoing three-month conflict may soon end, Bloomberg News reported on Thursday, citing a source familiar with the discussions.The anonymous source confirmed a prior Axios report, though President Donald Trump has not yet signed off on the terms, the newswire said.While both sides have previously celebrated progress and Trump has often claimed a deal was imminent, the impasse has repeatedly persisted, the publication said.Vice President JD Vance told reporters that the two nations are exchanging proposals on specific language regarding Iran's nuclear capabilities, and noted that Iran appears to be engaging in good faith, with tangible progress underway, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Shares Decline on Fresh Conflict in Middle East, Higher Oil Prices

South Korean shares closed lower on Thursday, snapping a four-day winning streak as investors were skeptical of the recent rally led by AI boom.Investors also took a moment to ponder the increasing oil prices after the U.S. attacked Iran despite the ongoing peace talks.The Korea Composite Stock Price Index or Kospi fell 43.41 points, or 0.5%, to end at 8,185.29. The Kosdaq also decreased by 28.77 points, or 2.5%, to close at 1,104.36.Oil prices climbed on Thursday after fresh U.S. strikes in Iran raised concerns over shipping disruptions in the Strait of Hormuz. Brent crude added more than 3% to around $97 a barrel, while U.S. crude gained over 3%, as Iran's Revolutionary Guards said they had targeted a U.S. airbase following American strikes on a site seen as threatening regional shipping and U.S. forces.In economic news, the Bank of Korea kept its base rate unchanged at 2.50% for the inter-meeting period amid high inflationary pressure and uncertainties surrounding developments in the Middle East, the central bank said in a Thursday release.In corporate news, Megabox JoongAng took out a loan of 21 billion won from its parent and entertainment giant ContentreeJoongAng (KRX:036420) to secure liquidity, according to a filing with the Korea Exchange on Thursday.Shares of ContentreeJoongAng fell nearly 1% at market close.

Bank of Korea Keeps Base Rate Unchanged at 2.50%

Bank of Korea kept its base rate unchanged at 2.50% for the inter-meeting period amid high inflationary pressure and uncertainties surrounding developments in the Middle East, the central bank said in a Thursday release.Five members of the Monetary Policy Board backed keeping the base rate steady, while Chang Yongsung and Ryoo Sangdai opposed, calling for a 0.25% rate hike to 2.75%.The decision was in line with a poll conducted by Reuters, wherein 30 of ​32 economists anticipated the rate freeze decision. A survey conducted by Bloomberg also witnessed 22 out of 23 economists agreeing on a steady rate decision.Inflation pressures have risen due to the Middle East conflict, while stronger exports raised growth beyond earlier expectations, and financial stability risks remain.Consumer inflation rose to 2.6% in April on the jump in petroleum prices, while core inflation remained unchanged at 2.2%, and inflation expectations remained in the upper 2% range.The central bank expects inflationary pressure to build further amid higher oil prices and growing demand, raising inflation forecasts for this year to 2.7% for headline inflation and 2.4% for core inflation, both above its February projections.

South Korean Shares Open Lower After US Attack on Iran, Oil Gains

South Korean stocks opened lower on Thursday, as investors adopted a wait-and-watch approach amid a slowdown in the rally led by AI boom. Investors also took a moment to ponder over the increasing oil prices after the U.S. attacked Iran despite the ongoing peace talks.The benchmark Korea Composite Stock Price Index, or Kospi, fell 0.8%, or 62.97 points, to open at 8,165.73. The Kosdaq increased 0.2% to open at 1,135.84.Oil prices rose in early Asian trading after new U.S. strikes near Bandar Abbas and drone interceptions near the Strait of Hormuz raised supply concerns, with U.S. crude futures and Brent crude both gaining more than 2%.According to a U.S. official, the overnight strikes targeted an Iranian ground control station seen as a threat to U.S. forces and commercial shipping near the Strait of Hormuz, while four Iranian attack drones were also shot down.The strikes came hours after U.S. President Donald Trump rejected Iranian media reports that Tehran and Oman could jointly oversee shipping in the strategic waterway under a potential peace agreement.

Bank of Korea Holds Rate Steady as Expected

Market Chatter: Bank of Korea Expected to Hold Rate Steady at 2.50%: Bloomberg

South Korea's central bank is expected to hold the seven-day repurchase rate steady at 2.50% at its rate-setting meeting on Thursday, 22 out of the 23 economists projected in a Bloomberg survey.The economist who did not agree with a steady-rate policy this time expects a quarter-point hike, Bloomberg said in a Wednesday report.The central bank's first dot plot, introduced in February under former Governor Rhee Chang-yong, showed that policymakers expected rates to remain steady at 2.5% over the next six months.Investors are now watching for any upward shift in the median outlook under the new Governor Shin Hyun Song and newly appointed board member Kim Jin Ill. Ill's appointment is viewed as tilting the board toward a more hawkish stance after the exit of dovish member Shin Sung-hwan, the report said.The Bank of Korea has already warned that consumer prices could rise well above the 2.2% forecast issued in February, with Governor Shin cautioning that higher oil prices and a weaker currency may add to price pressures while cutting growth short, Bloomberg reported.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Stocks Hit New High Above 8,200 Points as Samsung, SK Hynix Rally

South Korean stocks climbed for a fourth straight session on Wednesday to a new record above the 8,200-point level, led by strong gains in Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660), which added nearly 3% and over 9% respectively.Investors also assessed renewed Middle East tensions alongside efforts toward a peace agreement between the U.S. and Iran.The Korea Composite Stock Price Index or Kospi jumped by 181.19 points, or 2.3%, to end at 8,228.7. The Kosdaq decreased by 39.39 points, or 3.4%, to close at 1,133.13.In economic news, the composite business sentiment index in all industries in South Korea increased four points to 98.9 in May from 94.9 in April, while the outlook for the next month added 3.7 points to 97.6, according to data released by the Bank of Korea on Wednesday.The latest print marked the highest in over three years.The seasonally adjusted composite business sentiment index for the manufacturing sector added 1.7 points to 100.8, while the outlook for the following month also added 2.3 points to 100.3, the central bank said.For the non-manufacturing sector, the seasonally adjusted composite business sentiment index increased 5.4 points to 97.5, while the outlook for the following month added 4.7 points to 95.9.In corporate news, Aamajority of Samsung Electronics' largest labor union approved a compensation agreement that will provide chip workers with average bonuses of about 513 million won, or $340,000 each, Bloomberg News reported Wednesday.Around 74% of union members backed the deal after weeks of negotiations.The move follows a similar bonus payout agreement reached in 2025 by competitor SK Hynix, though Samsung's actual bonus payments will largely depend on earnings and chip demand.In other news, Samsung Electronics also plans to invest $1.5 billion in Vietnam to build its first chip testing factory in the country, The Economic Times reported Wednesday, referring to a company document reviewed by Reuters.Construction has already begun at an industrial park about 60 kilometers north of the Vietnamese capital of Hanoi, with operations expected to start in November 2027.

Korea Exchange Halts Kospi Trading for Five Minutes After Strong Buy Amid Chip Stock Gains

The Korea Exchange activated a five-minute buy-side sidecar on the country's primary stock market on Wednesday morning amid gains made by semiconductor shares as investors weighed the possibility of a peace agreement between the U.S. and Iran.The Korea Exchange announced the order at 9:06 am after the KOSPI200 Futures rose 66.10 points, or 5.21%, to trade at 1,333.50.A buy-side sidecar is activated when the KOSPI200 Futures index jumps 5% or more for at least one minute.

South Korean Equities Open to New High on Chip Stocks Rally, Middle East Optimism

South Korean stocks opened at a new high on Wednesday, led by gains made by semiconductor shares as investors assessed renewed Middle East tensions alongside efforts toward a peace agreement between the U.S. and Iran.The benchmark Korea Composite Stock Price Index, or Kospi, rose 2.4%, or 194.61 points, to open at 8,242.12. The Kosdaq increased 0.1%, or 1.28 points, to open at 1,173.80.Shares of key market-moving chip stocks Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) added over 6% and 9% in recent trade.Iran said Tuesday that the U.S. violated a ceasefire by striking targets near the Strait of Hormuz, raising concerns over efforts to end the military conflict. Meanwhile, U.S. Secretary of State Marco Rubio said a deal to halt the war could take "a few days" despite earlier signs of progress in talks to restore shipping through the strategic waterway.

South Korea's Business Sentiment Improves to Over Three-Year High in May

The composite business sentiment index in all industries in South Korea increased four points to 98.9 in May from 94.9 in April, while the outlook for the next month added 3.7 points to 97.6, according to data released by the Bank of Korea on Wednesday.The latest print marked the highest in over three years.The seasonally adjusted composite business sentiment index for the manufacturing sector added 1.7 points to 100.8, while the outlook for the following month also added 2.3 points to 100.3, the central bank said.For the non-manufacturing sector, the seasonally adjusted composite business sentiment index increased 5.4 points to 97.5, while the outlook for the following month added 4.7 points to 95.9.Meanwhile, the economic sentiment index, a composite of the business survey and consumer survey indices, went up 5.8 points to 97.5.

Market Chatter: South Korea Manufacturing Confidence Rebounds for June

South Korea's manufacturing sentiment rebounded for June for the first time in three months, supported by strong optimism in the semiconductor sector despite the ongoing tensions in the Middle East, Yonhap News reported Tuesday, citing the Korea Institute for Industrial Economics & Trade.The professional survey index (PSI) for the manufacturing sector's business outlook increased to 107 in June from 95 in May. The PSI outlook had remained below the 100 mark for April and May before returning above 100 for June, the report said.A PSI reading above 100 indicates optimists outnumbering pessimists, while a reading below 100 signals the opposite.Confidence improved across the display, automobile, machinery, and bio-health sectors, while confidence in the shipbuilding and steel sectors declined to 100 and 122 for next month, respectively. Confidence in the mobile phone and textile sectors remained below the threshold at 80 and 93, respectively, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Stocks Hit New High Above 8,000 on Hopes of US-Iran Deal

South Korean stocks closed at a new high, above the 8,000-point level on Tuesday, as investors hoped for a U.S.-Iran agreement to reopen the Strait of Hormuz.The Korea Composite Stock Price Index or Kospi jumped by 199.8 points, or 2.6%, to end at 8,047.51. The Kosdaq also increased by 11.39 points, or 1%, to close at 1,172.52.Brent crude rose 2% to $98.26 a barrel on Tuesday after the U.S. carried out military operations in southern Iran and mixed signals from U.S. President Donald Trump on Washington-Tehran negotiations kept traders on edge, while U.S. WTI crude futures were down 5.1% at $91.73 per barrel.Despite the ongoing ceasefire and negotiations to permanently end the war, the U.S. targeted and attacked Iranian missile launch sites and boats around the Strait of Hormuz in what its military called "self-defense strikes."The strikes took place after Iranian foreign ministry spokesman Esmail Baqai said that although talks progressed with the U.S., a deal to end the conflict "is not imminent".In economic news, South Korea's central bank is expected to hold the base rate steady at 2.50% at its rate-setting meeting on May 28, 30 out of the 32 economists projected in a poll by Reuters.In addition, most of the economists expect one or more rate hikes by the end of this year as the U.S.-Iran war is projected to add inflationary pressures, Reuters said.The rate hike expectations come after inflation surpassed the central bank's 2% target, with April inflation hitting its highest level in nearly two years as the ongoing war in the Middle East and the blockade of the Strait of Hormuz kept oil prices above $100 a barrel for almost three months.The Bank of Korea is also expected to raise this year's growth forecast from 2% on Thursday, making the case strong for further rate hikes ahead.In corporate news, Sunic System (KOSDAQ:171090) secured a large-area deposition equipment contract for organic light-emitting diode deposition equipment from LG Display (KRX:034220), according to a filing with the Korea Exchange on Tuesday.The contract, the value of which was undisclosed, is valid till May 21, 2027.Shares of the electrical components manufacturer rose more than 1% at market close, while those of LG Display rose over 3%.

Market Chatter: Bank of Korea Expected to Hold Rate Steady at 2.50%

South Korea's central bank is expected to hold the base rate steady at 2.50% at its rate-setting meeting on May 28, 30 out of the 32 economists projected in a poll by Reuters.In addition, most of the economists expect one or more rate hikes by the end of this year as the U.S.-Iran war is projected to add inflationary pressures, Reuters said.The rate hike expectations come after inflation surpassed the central bank's 2% target, with April inflation hitting its highest level in nearly two years as the ongoing war in the Middle East and the blockade of the Strait of Hormuz kept oil prices above $100 a barrel for almost three months, it said.The Bank of Korea is also expected to raise this year's growth forecast from 2% on Thursday, making the case strong for further rate hikes ahead, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Stocks Hit Record High on Middle East Optimism

South Korean stocks opened at a new high on Tuesday, crossing the 8,000-point threshold as investors hoped for a U.S.-Iran agreement to reopen the Strait of Hormuz.The benchmark Korea Composite Stock Price Index, or Kospi, rose 2.8%, or 223.2 points, to open at 8,070.91. The Kosdaq increased 2.4%, or 28.15 points, to open at 1,189.28.Optimism over a possible end to the conflict in the Middle East led oil prices to decline sharply as well. Brent crude plunged 7% to $96, and U.S. West Texas Intermediate futures shed 6.5% to $90.Despite the ongoing ceasefire and negotiations to permanently end the war, the U.S. targeted and attacked Iranian missile launch sites and boats around the Strait of Hormuz in what its military called "self-defence strikes."The strikes took place after Iranian foreign ministry spokesman Esmail Baqai said that although talks progressed with the U.S., but a deal to end the conflict "is not imminent".The strikes were made on an area near Iran's southern port city of Bandar Abbas, home of a naval base that sits on the Strait of Hormuz.

Asia Week Ahead: Policy Rate Decisions, Inflation Prints and GDP Reports

Asia's economic calendar this week features a mix of inflation data, interest rate decisions, GDP releases and industrial figures across the region.The week opens with Singapore's GDP and inflation data, plus Thailand's trade figures, followed on Tuesday by Taiwan's industrial production and retail sales reports.Mid-week, attention turns to the Reserve Bank of New Zealand's policy decision and Australia's inflation print. On Thursday, the Bank of Korea will announce its rate decision, while Hong Kong releases trade data and India reports industrial and manufacturing output figures.Friday will be the busiest day for macro releases, led by a batch of key indicators from Japan. The week wraps up with China's PMI readings on Sunday.Here's what to watch in the week ahead.MONDAY, May 25Singapore's economy grew 6.0% year over year in the first quarter, government data showed, beating the 4.6% flash estimate and accelerating from the 5.7% growth in Q4.The expansion was driven by strong performances in the wholesale trade, manufacturing, and finance and insurance sectors.Meanwhile, the city-state's annual inflation rate held steady at 1.8% in April, unchanged from March but below market expectations of 2%.Core inflation, on the other hand, eased to 1.4% in April from 1.7% a month prior.In Thailand, exports surged 23.1% year over year to $31.6 billion in April, accelerating from an 18.7% increase in March and beating forecasts of 16.2%.Imports likewise strengthened, expanding 45% in April to $41.6 billion, compared with a rise of 35.7% a month prior.As a result, the trade deficit ballooned to $10.02 billion in April from $3.3 billion a year earlier, far above forecasts of a $5.1 billion shortfall.TUESDAY, May 26Singapore will release its April industrial production data, while Taiwan is due to report both industrial production and retail sales figures for the month.WEDNESDAY, May 27New Zealand's central bank will hold its policy meeting, with analysts expecting no change to the country's official cash rate of 2.25%, according to a Trading Economics consensus.Australia is set to release inflation figures on the same day. Consumer prices rose 4.6% year on year in March, the fastest pace since September 2023, and are expected to accelerate to 5.1% in April as oil prices climb amid the Middle East conflict.Meanwhile, China will report its industrial profits for April. A pair of confidence reports covering business and consumer sentiment will be due in South Korea and Taiwan, respectively.THURSDAY, May 28The Bank of Korea is set to meet for its policy rate decision, with markets watching for any change to its current 2.5% benchmark rate amid inflation and growth pressures linked to the ongoing conflict in the Middle East.Hong Kong will release its monthly trade figures. The April reading could show a narrowing of the trade deficit to HK$46 billion from HK$89.1 billion in March, Trading Economics forecasted.Meanwhile, India will report its industrial and manufacturing production data for April.Markets will also watch New Zealand's ANZ Business Confidence report for May, after the index dropped to -10.6 in April -- its first negative reading since August 2023 -- as the Middle East conflict weighed on sentiment.FRIDAY, May 29Japan's usual end-of-month data deluge, which includes the release of inflation, unemployment rate, industrial production and retail sales, will provide insights into the country's economic health.Markets will also watch Taiwan's final Q1 GDP growth figures for any revision from the preliminary estimate, which showed the economy expanding by 13.7%.Other highlights include trade balance figures from Macau and the Philippines, and export and import price data from Singapore.Both South Korea and Thailand will report their monthly industrial production and retail sales stats, while Macau will report its unemployment rate for April.Lastly, a report capturing business confidence in April will be due in the Philippines.SUNDAY, May 31China, the biggest economy in Asia, will release its official May PMI data covering manufacturing, non-manufacturing and general activity.

Market Chatter: South Korea to Allow Overseas Investors to Directly Invest in ETFs

South Korea plans to allow overseas investors to directly invest in domestic exchange-traded funds (ETFs), in a bid to attract more foreign investment amid the country's primary stock market index's recent record rally, Yonhap News reported Sunday.The Financial Services Commission is pushing for regulatory revisions to give foreign investors direct access to the country's ETFs and plans to issue a prior notice in June. The measure could be introduced in the second half of 2026 if the Financial Services Commission and the finance ministry resolve withholding tax issues and brokerages conclude trading system upgrades, analysts said, according to the report.The Korea Composite Stock Price Index, or Kospi, has surged 82% so far this year, fueled by strong gains in the stocks of Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) amid the AI boom worldwide, it said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)