FX.co ★ South Korea Shares Rise on US Rate Bets, Battery Stocks Surge

On Tuesday, the KOSPI index saw an increase of 1.7%, reaching approximately 3,200 points. This marks the second consecutive session of gains for the benchmark, as it mirrored the rally on Wall Street driven by optimism over potential rate cuts in the US, spurred by weak employment data. Investors shifted focus back to growth sectors, particularly battery stocks, following a sell-off the previous week. Notably, LG Energy Solution climbed by 3.1%, while Samsung SDI and SK Innovation saw impressive growth of 10.2% and 2.7%, respectively. Additionally, chipmakers Samsung Electronics (+1.4%) and SK Hynix (+1.74%), as well as leading automaker Hyundai Motor (+1.0%), performed strongly. Foreign investors were net buyers, acquiring shares worth KRW 118.5 billion. In the economic landscape, consumer prices in South Korea recorded a year-on-year increase of 2.1% in July, remaining above the Bank of Korea's 2% target for the second consecutive month. The central bank expressed concerns about ongoing inflation uncertainty due to extreme weather conditions and external factors. Furthermore, market participants were attentive to discussions regarding a proposed stock tax hike, amidst speculation of adjustments following last Friday's market turbulence.