FX.co ★ South Korean Shares Follow Wall Street Higher

The KOSPI benchmark index experienced a 0.6% increase on Wednesday, reaching approximately 2,524 points. This is the highest level witnessed in seven weeks, mirroring a tech-fueled surge from Wall Street the previous night. This rise is attributed to continuing positive sentiment around easing trade tensions between the US and China. On the domestic front, South Korea's latest employment data was a focal point; the jobless rate decreased to 2.7% in April from 2.9% in March, aligning with February's figures. Although nearly 200,000 jobs were created, the manufacturing sector, crucial to the nation's economy, recorded its most significant annual decline in employment in over six years. Leading the charge among major stocks were chip companies, with Samsung Electronics advancing 0.9% following its acquisition of the German ventilation company FlaktGroup for €1.5 billion, marking its largest transaction in eight years. Simultaneously, SK Hynix, a supplier for Nvidia, rose by 2.8% after Nvidia revealed a significant AI chip agreement with Saudi Arabia. Additionally, shipbuilding companies saw substantial gains, including Hyundai Heavy Industries increasing by 1.7%, Korea Shipbuilding climbing 1.8%, and Samsung Heavy Industries advancing by 2.2%.