KOSPI

Market Chatter: South Korea Overtakes India to Become World's Sixth-Largest Stock Market

South Korea's equity market surpassed India to become the world's sixth-largest stock market, owing to a surge in semiconductor stocks, Bloomberg News reported Tuesday.The total market capitalization of South Korea-listed firms jumped 86% so far in 2026 to $5 trillion, while the Indian stock market's total capitalization has decreased to $4.8 trillion, the report said.Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660), both now valued at over $1 trillion, fueled the country's stock market rally through their dominance in AI memory chips, the report said.This helped the Korea Composite Stock Price Index or Kospi, more than double so far this year and pushed South Korea ahead of Canada, Germany, the UK, and France in terms of market capitalization, Bloomberg said.Despite South Korea's larger stock market, India's economy remains considerably bigger at $4.15 trillion as compared to the former's $1.93 trillion, the report said, citing International Monetary Fund estimates.Shares of Samsung Electronics rose 1% while those of SK Hynix declined nearly 3% in recent trade.(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 Korea's Annual Inflation Rate Accelerates to 3.1% in May

South Korea's annual inflation rate gained speed at 3.1% in May from 2.6% in April, according to data from the Ministry of Data and Statistics published Tuesday.Analysts expected a 3% rate for the month, according to Investing.com.On a monthly basis, consumer prices were up 0.5%, unchanged from the pace of growth between March and April.Meanwhile, the country's annual inflation rate excluding food and energy was 2.5%, compared with the prior reading of 2.2%. Month over month, core consumer prices inched up 0.5%, against the previous 0.3% rise.

Asia Week Ahead: Manufacturing Activity; Policy Rate Decision; and Inflation Prints

For the week ahead in Asia, manufacturing activity will be in focus as S&P Global releases a broad mix of purchasing managers' index reports covering multiple economies.The week opens with a flurry of manufacturing PMI readings for May, followed by inflation data from South Korea and Indonesia on Tuesday.Mid-week, Australia's first-quarter GDP report will take center stage, while markets will also watch a heavy batch of readouts from Vietnam.Thursday will be lighter, led by Australia's April trade report, before Friday brings India's policy rate decision and GDP figures and inflation readouts from multiple regions.Here's what to watch in the week ahead.MONDAY, June 1The week kicked off with a flurry of S&P Global's purchasing managers' index (PMI) reports covering May manufacturing activity across the region.China's manufacturing activity eased after the seasonally adjusted RatingDog China General Manufacturing PMI came in at 51.8, compared with 52.2 in the previous month and the consensus estimate of 51.4 from Investing.com.Data from the National Bureau of Statistic similarly showed factory activity easing, with the official purchasing managers' index falling to a neutral 50 from 50.3 in April.A reading above 50 means growth, while a reading below 50 indicates contraction.Manufacturing activity similarly slowed in Australia as new orders fell sharply for a third consecutive month amid rising costs and ongoing supply-chain disruptions linked to the war in the Middle East.In contrast, Japan's manufacturing production expanded, with the latest S&P Global Japan Manufacturing PMI coming in at 54.5, compared with 55.1 in April, matching the flash data.South Korean manufacturing output also expanded during the month, hitting its highest in five years due to a rise in production and new order volumes, S&P Global said.India, Taiwan and Vietnam were also among the regions that experienced improved output during May.Meanwhile, The Philippines' manufacturing activity returned to growth in May as stronger output and a recovery in new orders offset continued weakness in exports.Moving ahead, the Melbourne Institute said its monthly inflation gauge fell in May after two consecutive monthly increases, driven largely by a decline in transport costs. The monthly cost of living also declined in May, particularly for self-funded retirees.Elsewhere, South Korea recorded a trade surplus of $26.9 billion in May, a new all-time high, and marking the third straight month of more than $20 billion in trade surplus.TUESDAY, June 2Focus shifts Tuesday to inflation data coming in from South Korea.Economists at ING said consumer prices could reach 3% year on year in May, reflecting higher input costs that are likely to be passed on to consumers.Pipeline cost pressures are also likely to reflect in Indonesia's inflation print due Tuesday, with ANZ expecting prices to tick up to 3% from 2.42% in the prior month, the Wall Street Journal reported.Trade figures due in Indonesia the same day could also show moderating exports as the effects of front-loaded demand fade and commodity prices soften, the WSJ said, citing an RHB economist.On the activity front, S&P Global releases its monthly manufacturing PMIs for Indonesia, Malaysia, and Thailand. The Singapore Institute of Purchasing and Materials Management's PMI report is also expected.Lastly, Hong Kong will release its retail sales stats for April.WEDNESDAY, June 3Australia's first-quarter gross domestic product (GDP) data will dominate headlines Wednesday.Both Westpac and CommBank said they expect growth to have moderated during the first three months of the year, though their estimates differed.CommBank forecast a 0.2% quarterly rise in GDP, while Westpac projected 0.5%; both would be slower than the 0.8% growth recorded in the final quarter of 2025.Neighboring New Zealand will disclose first-quarter export and import price stats.Markets will also be following a speech by Bank of Japan Governor Kazuo Ueda for clues on the central bank's next interest-rate hike.Wednesday also features a heavy slate of macro data from Vietnam, including inflation, balance of trade, industrial production, and retail sales.Trading Economics expects Vietnam's May inflation to accelerate to 6% from 5.46% in April. Meanwhile, the data platform estimated the country's trade deficit could widen to $3.4 billion from $3.28 billion a month prior.Meanwhile, S&P Global will release the next batch of its PMI reports covering composite and services activity in China, India, Japan, Australia, and Hong Kong.THURSDAY, June 4Thursday will be relatively light on readouts, with Australia's April trade figures among the handful of releases of note.Australia is expected to post a trade surplus of A$2.6 billion in April, rebounding from a A$1.8 billion deficit in March - its first shortfall since late 2017, Westpac said in a preview.According to the bank, major commodity exports appeared to have increased notably during the period after recording three consecutive monthly declines.In Singapore, S&P Global's monthly PMI will be due, while Thailand will release a business confidence report.FRIDAY, June 5The tail end of the week brings a policy rate decision in India, which will also release its quarterly GDP growth figures.The Reserve Bank of India is expected to hold rates at 5.25% but could signal hawkish sentiment during its vote, the WSJ reported, citing a UOB economist.Meanwhile, a Trading Economics consensus placed the country's GDP growth rate at 7.3%, down marginally from the 7.8% recorded in the final quarter of 2025.ANZ Research said the economy stayed broadly healthy in the fiscal fourth quarter, although growth eased slightly in March as manufacturing, exports and profit margins came under pressure due to global disruptions, the WSJ reported.Taiwan is set to report monthly inflation data, with ING expecting consumer prices to rise above the 2% target for the first time since April 2025. The bank expects inflation to accelerate to 2.2% year on year in May from 1.7% in April, reflecting Taiwan's reliance on imported energy, which leaves the economy vulnerable to higher global prices."We expect inflation to peak toward the middle of this year, raising the risks for a potential central bank rate hike at the coming meetings," ING said in a preview.Thailand and the Philippines will similarly report their respective inflation rates for May, with the latter also releasing industrial production stats.Lastly, Singapore will report its retail sales figures for April.

South Korean Shares Rise to Record High on Chip, AI-related Stock Gains; Hanmi Science Shares Jump Over 4%

South Korean stocks climbed to a new high on Monday, buoyed by strong gains in semiconductor firms and AI-related shares. Shares of major market movers Samsung Electronics (KRX:005930), SK Hynix (KRX:000660), and LG Electronics (KRX:066570) added over 10%, more than 1%, and nearly 30%, respectively, at market close.The Korea Composite Stock Price Index or Kospi rose 312.23 points, or 3.7%, to end at 8,788.38. The Kosdaq decreased by 24.77 points, or 2.3%, to close at 1,050.03.In economic news, South Korea recorded a trade surplus of $26.9 billion in May, a new all-time high, and marking the third straight month of more than $20 billion in trade surplus, the Ministry of Trade, Industry and Energy said in a Monday release.It came as exports increased 53.2% to $87.8 billion from the year-ago period, the sharpest pace of growth since 1984. Imports rose 20.8% to $60.8 billion.Semiconductor exports surged 169.4% to a record $37.16 billion, while non-semiconductor exports increased by 16%. Rising memory chip prices amid increased capital spending by major U.S. technology companies pushed chip exports higher.In corporate news, Hanmi Science (KRX:008930) signed a technology licensing agreement for Sonefpeglutide (HM15912), a short bowel syndrome drug, with Eli Lilly and Co., according to a Monday filing with the Korea Exchange.The technology licensing agreement is worth up to $1.26 billion, including a $75 million upfront payment and up to $1.185 billion in development, regulatory, and commercial milestones, along with royalties based on future sales.Shares of the company rose more than 4% at market close.

Market Chatter: Seoul, Tokyo Discuss Military Logistics Deal; to Conduct Joint Humanitarian Search, Rescue Exercise in June

South Korea and Japan discussed the possibility of a military logistics support agreement during talks on the sidelines of the Shangri-La Dialogue in Singapore, Reuters reported Sunday.Defence Minister Ahn Gyu-back held the talks with his Japanese counterpart Shinjiro Koizumi. Both parties discussed carrying out a joint humanitarian search and rescue exercise this month, which would be the ⁠first ​time in about nine years, the report said.The agreement would allow South Korea and Japan to share military logistics and supplies, including fuel, food, and ammunition, during operations and emergencies, it said.Ahn said Seoul remains cautious about pursuing the agreement, stressing that public understanding and support in both countries would be needed before moving forward, according to the report.(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 Korea Logs Record Trade Surplus in May as Export Growth Hits Four-Decade High

South Korea recorded a trade surplus of $26.9 billion in May, a new all-time high, and marking the third straight month of more than $20 billion in trade surplus, the Ministry of Trade, Industry and Energy said in a Monday release.It came as exports increased 53.2% to $87.8 billion from the year-ago period, the sharpest pace of growth since 1984. Imports rose 20.8% to $60.8 billion.Semiconductor exports surged 169.4% to a record $37.16 billion, while non-semiconductor exports increased by 16%. Rising memory chip prices amid increased capital spending by major U.S. technology companies pushed chip exports higher, the release said.

South Korean Shares Open at New High on Technology Stock Gains

South Korean stocks opened at a new high on Monday, led by surging technology shares despite uncertainty around the negotiations between the US and Iran.The benchmark Korea Composite Stock Price Index, or Kospi, rose 0.1%, or 9.52 points, to open at 8,485.67. The Kosdaq decreased 0.2%, or 2.03 points, to open at 1,072.77.Major market movers Samsung Electronics (KRX:005930) and LG Electronics (KRX:066570) gained nearly 7% and over 25% in early morning trade, respectively.Oil prices jumped over 2% on Monday after Israel ordered troops to push deeper into Lebanon, fueling concerns over a broader conflict in the region and potential disturbances to global energy supplies. Brent crude rose 2.1% to $93.05 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 2.5% to $89.53 in early trading.

South Korea's Manufacturing Activity Hits Five-Year High, S&P Global Data Shows

South Korean manufacturing output expanded in May, S&P Global said on Monday.The latest seasonally adjusted S&P Global South Korea Manufacturing PMI rose to 54.8 from 53.6 in April.S&P Global said the reading was the highest in five years, driven by the rise in production and new order volumes.The demand for manufactured products was fueled by the need to build and maintain inventories due to the disruption caused by the war in the Middle East, according to S&P.

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