Journalist

Kim Yeon-jae
  • Asian shares extend rally on AI momentum and KOSPI recovers 4,000-mark.
    Asian shares extend rally on AI momentum and KOSPI recovers 4,000-mark. SEOUL, November 27 (AJP) - Asian equity markets maintained their positive momentum on Thursday, driven by persistent optimism surrounding the Artificial Intelligence (AI) sector and a growing global conviction that US interest rates may soon ease. The KOSPI in Seoul led the charge, reclaiming the psychologically significant 4,000-point mark to trade 1.4 percent higher at 4,017, reclaiming the 4,000-point mark for the first time in five days. Sentiment improved after the Bank of Korea raised its annual growth outlook and held rates steady, a coordinated move with fiscal authorities to help stabilize the Korean won. The KOSDAQ gained 0.5 percent to 881.6. Institutional investors — seen as responding to government pressure to support won demand — led the rally with net purchases of 215.7 billion won ($147 million). Foreign investors also remained net buyers from the opening bell, adding 182.1 billion won. Retail investors booked profits, offloading 400.7 billion won. The won traded at 1,466 per dollar, up 4.5 won from the previous day. Market leaders Samsung Electronics and SK hynix advanced simultaneously for the first time in weeks. Samsung Electronics gained 2 percent to 105,000 won, while SK hynix jumped 5.7 percent to 555,000 won, reclaiming the key 550,000-won level as Nvidia shares rebounded overnight. Energy names tracked chipmakers higher. Doosan Enerbility climbed 1.67 percent to 79,000 won, extending its upward run on the strength of its wide portfolio spanning large nuclear reactors, small modular reactors and gas turbines. Robot stocks — essential to semiconductor production — also rose. Doosan Robotics gained 3.5 percent to 74,400 won, while KOSDAQ-listed Rainbow Robotics, a Samsung Electronics affiliate, climbed 3.5 percent to 386,500 won. Biotech shares were mixed. Samsung Epis Holdings, newly spun off from Samsung Biologics, surged 15 percent to 418,000 won, easing concerns about undervaluation. Celltrion was little changed at 186,500 won. In Japan, the Nikkei 225 climbed 1.35 percent to 50,230. Semiconductor names led gains, with Advantest up 4.5 percent at 20,340 yen ($130.6) and Ibiden up 5.7 percent at 11,525 yen. Materials producer Denka, known for fluorine gas used in wafer cleaning, rose 5 percent to 2,670 yen. Taiwan’s TAIEX edged up 0.67 percent to 27,593. Chip sentiment was mixed: TSMC traded flat at 1,445 Taiwan dollars ($46.2), as reports surfaced that Alphabet plans to outsource key semiconductor packaging to Intel. MediaTek gained 3.1 percent to 1,340 Taiwan dollars, extending its rally on expectations it will benefit from Alphabet’s AI chip roadmap. On the mainland, Shenzhen outperformed with the tech-heavy SZSE Component up 1.03 percent to 13,043. The Shanghai Composite added 0.4 percent to 3,880. Hong Kong’s Hang Seng Index inched up 0.2 percent to 25,989, with gains capped after a deadly apartment fire in Tai Po on Wednesday left at least 44 people dead and forced the cancellation of corporate events across the city. 2025-11-27 11:30:45
  • BOK holds year-end key rate at 2.5%, ups growth forecast to 1.0%
    BOK holds year-end key rate at 2.5%, ups growth forecast to 1.0% SEOUL, November 27 (AJP) - As widely expected, the Bank of Korea kept its base rate unchanged at 2.5 percent on Thursday in its final policy meeting of 2025, reflecting policy bind amid waning appeal of Korean debt and assets with the Korean won at crisis-level weakest. The freeze signals the Korean central bank's decision to stay on the sidelines while hoping for greater policy maneuvering room should the U.S. Federal Reserve cut its benchmark rate again in December. Monetary authorities trimmed the Korean policy rate twice in the first half of the year, lowering it a combined 50 basis points from 3.00 percent to 2.50 percent, but have held steady since May. The pause came as housing demand roared back ahead of a hawkish incoming administration and as the frenzy for U.S. tech stocks fueled structural weakness in both the won and Korean bonds. Those dynamics sharply limited fiscal and monetary options as authorities attempted to stabilize markets. The BOK’s easing cycle effectively stalled under the weight of renewed leveraged investment in property and equities. Korea’s household credit reached a record 1,918 trillion won ($1.3 trillion), with household loans alone totaling 1,845 trillion won — a staggering 96.2 percent of all household credit. Volatility in the foreign-exchange market added another layer of constraint. The central bank’s data shows the volume-weighted average dollar–won rate at 1,417 won as of Tuesday — exceeding the previous record of 1,398.88 won set in 1998 during the IMF bailout. For comparison, the annual average was 1,276.4 won in 2009 following the global financial crisis. The Bank of Korea separately raised this year's economic estimate to 1.0 percent from previous 0.9 percent and for next year's to 1.8 percent from 1.6 percent upon identifying stronger-than-expected exports led by AI chip boom. 2025-11-27 10:00:25
  • Asian shares rise on AI tailwind; Chinese markets mostly flat
    Asian shares rise on AI tailwind; Chinese markets mostly flat SEOUL, November 26 (AJP) - Asian shares closed broadly higher Wednesday, lifted by renewed optimism over artificial intelligence following the debut of Google’s “Gemini 3.0” model. While sector performance varied across the region, sentiment improved as investors increasingly dismissed the notion of an AI bubble. The benchmark KOSPI climbed 2.67 percent to 3,960.87. Easing anxiety over the AI sector and direct market intervention by foreign exchange authorities served as the day’s strongest catalysts. Institutional investors led the rally, net buying 1.23 trillion won ($838 million). The surge was interpreted as a result of the National Pension Service and major brokerages stepping up domestic equity purchases after FX authorities urged reduced reliance on overseas assets. Foreign investors also turned net buyers, adding 516 billion won. Retail investors, however, sold 1.8 trillion won, reflecting both profit-taking and skepticism over the government’s use of pension funds in its stock and currency defense operations. Despite intervention, the Korean won closed at 1,471.2 won per dollar, down 5 won as of 4:45 p.m., suggesting FX measures have yet to meaningfully reverse the currency’s slide. Treasury yields fell across the curve amid the absence of tangible momentum toward exchange-rate normalization. The 3-year yield fell 2.3 basis points to 2.878 percent, while the 10-year yield dropped 2.2 basis points to 3.242 percent. Market heavyweights advanced, though with varying strength. Samsung Electronics posted the strongest gain, rising 3.52 percent to 102,800 won after drawing investor attention through its AI semiconductor supply partnership with Broadcom, a key collaborator of Alphabet. SK hynix reversed early losses and finished 0.96 percent higher at 524,000 won, though its positioning as an Nvidia partner — rather than an Alphabet-linked supplier — capped its upside. AI component makers rallied, with Samsung Electro-Mechanics jumping 6.42 percent to 257,000 won. Prospects for a Ukraine war ceasefire fueled a surge in reconstruction-related plays. Hyundai Engineering & Construction rose 7.73 percent to 65,500 won, Samsung C&T gained 3.28 percent to 236,000 won, and nuclear energy firm Doosan Enerbility advanced 5.71 percent to 77,700 won. ESS and battery stocks also enjoyed a sharp rebound on renewed confidence in AI-led demand. Samsung SDI rose 7.03 percent to 304,500 won, and LG Energy Solution climbed 5.32 percent to 435,500 won. Japan’s Nikkei 225 rose 1.85 percent to 49,559.07. Gains in semiconductor equipment bellwethers were more muted: Advantest rose 1.99 percent to 19,460 yen ($124.58), and Tokyo Electron inched up 0.23 percent to 31,170 yen. Ibiden, a key Nvidia partner, fell 3.75 percent to 10,905 yen after plunging more than 7 percent earlier. SoftBank Group rebounded 5.65 percent to 16,260 yen after a sharp drop the previous day tied to its OpenAI exposure rather than Alphabet’s ecosystem. Taiwan’s TAIEX also joined the rally, rising 1.85 percent to 27,409.54. MediaTek — reportedly involved in designing Alphabet’s next-generation AI chip — surged 9.7 percent to 1,300 Taiwan dollars ($41.5), while TSMC rose 1.77 percent to 1,440 Taiwan dollars on expectations of increased TPU manufacturing. In mainland China, the Shenzhen market led gains with the SZSE Component rising 1.02 percent to 12,907.83, driven by a surge in communication equipment stocks on expectations of increased state investment in information infrastructure. Shandong Zhongji Electrical jumped 13.21 percent to 543 yuan ($76.6). The Shanghai Composite slipped 0.15 percent to 3,864.18, weighed down by weak domestic consumption. The index’s heavy weighting toward state-owned enterprises, financial firms, and consumer staples amplified the impact of China’s slowdown. China’s 10-year Treasury yield fell to 1.83 percent on Nov. 21 — below Japan’s 1.84 percent — underscoring prolonged economic malaise. Hong Kong’s Hang Seng Index erased early gains and was trading nearly flat at 25,930 as of 4:45 p.m., up just 0.14 percent. 2025-11-26 17:42:21
  • Asian stocks reinvigorated by Googles AI fuel
    Asian stocks reinvigorated by Google's AI fuel SEOUL, November 26 (AJP) - Asian stocks snapped out of their correction phase Wednesday as renewed euphoria over Alphabet’s “Gemini 3.0” reignited AI-driven appetite and lifted sentiment across the region. The benchmark KOSPI gained 1.9 percent to close in on the 4,000 mark in the morning earnings session. Institutions returned in force, with domestic institutions buying 702 billion won and foreign institutions 1.223 trillion won. Confidence also improved after FX authorities took coordinated action to defend the weakening Korean won, with the finance ministry rounding up the National Pension Service and major brokerages. The dollar fell sharply by 5.9 won to 1,460.9 won as a result. Tech shares were mixed. Samsung Electronics rose 1.2 percent to 100,500 won, reclaiming the hard-won 100,000-won threshold on expectations tied to its partnership with Broadcom, a key Alphabet ally in developing Gemini 3.0. SK hynix fell 1.8 percent to 500,900 won on worries that Alphabet’s breakthrough in creating its own inference chips could chip away at Nvidia’s halo—an unease reflected in Nvidia being the only Magnificent 7 stock to decline overnight, losing 2.6 percent. Defense and reconstruction themes were strong following U.S. President Donald Trump’s claim that the end of the Russia–Ukraine war is imminent. Infrastructure and nuclear-related stocks rallied sharply. Hyundai Engineering & Construction jumped 7.7 percent to 65,500 won, and Samsung C&T climbed 4.8 percent to 239,500 won. Doosan Enerbility advanced 6 percent to 78,000 won on renewed expectations for Ukraine’s nuclear-power rebuilding. Defense stocks extended gains. Hanwha Aerospace added 2.4 percent to 880,000 won ahead of the imminent launch of its KSLV-II rocket, known as “Nuri.” Hyundai Rotem rose 1.75 percent on expectations of winning rolling-stock contracts tied to Ukraine’s reconstruction. LIG Nex1 gained 1.17 percent to 389,000 won, and Poongsan rose 2.2 percent to 96,400 won. Japan’s Nikkei 225 traded 1.8 percent higher at 49,549 as of 10:30 a.m., mirroring Seoul’s rebound. But semiconductor stocks were sharply divided. Advantest, a chip-testing equipment maker, rose 1.7 percent to 19,410 yen ($124.5), while Ibiden, a major Nvidia partner, plunged 5.6 percent to 10,700 yen. Taiwan’s TAIEX was up 1.54 percent at 27,327. TSMC rose 1.4 percent to 1,435 Taiwan dollars ($45.7), supported by expectations around producing AI chips for Alphabet and Broadcom, though upside momentum has been capped by reports that Alphabet may source future packaging from Intel. MediaTek surged 9.7 percent to 1,300 Taiwan dollars after Alphabet’s earlier signal that it would entrust the company with next-generation AI chip design. Chinese markets were mixed. The SZSE Component rose 0.69 percent to 12,868 and Hong Kong’s Hang Seng Index climbed 0.76 percent to 26,098, showing a characteristically sharper rebound for tech-heavy markets. The Shanghai Composite was flat at 3,872, up just 0.06 percent. 2025-11-26 11:30:57
  • Asian stocks mostly rise as Taiwan, Shanghai lead gains
    Asian stocks mostly rise as Taiwan, Shanghai lead gains SEOUL, November 25 (AJP) - Asian equities ended mostly higher on Tuesday, led by solid gains in Taiwan and mainland China, while early momentum in several tech-heavy indices faded by the close. South Korea’s benchmark KOSPI rose 0.3 percent to 3,857.78, paring back an early jump of more than 1 percent as enthusiasm around Google’s new generative AI engine, Gemini 3.0, cooled. Local chip and AI-related stocks saw limited spillover from the launch amid reports that Google is relying on its in-house silicon rather than Nvidia chips for inference. Foreign investors bought a net 116 billion won ($78.7 million), helping support the index, while retail investors and institutions booked profits. The won strengthened modestly to 1,472.7 won per dollar, though authorities’ efforts to curb volatility have had limited impact amid persistent structural pressures, including the U.S.–Korea rate gap and elevated household debt. Market bellwethers were mixed. Samsung Electronics climbed 2.69 percent to 99,300 won, nearing the psychologically important 100,000-won level, while SK hynix edged down 0.19 percent as foreign funds sold heavily. AI hardware names advanced, with Samsung Electro-Mechanics jumping 6.86 percent on strong demand for multilayer ceramic capacitors used in AI servers and EVs. Construction and infrastructure stocks also gained on optimism surrounding negotiations toward an end to the Russia-Ukraine conflict. Samsung C&T rose 4.82 percent and Hyundai Engineering & Construction added 1.84 percent. The KOSDAQ slipped 0.05 percent to 856.03 after giving up morning gains. Japan’s Nikkei 225 finished little changed, up 0.07 percent at 48,659.50. Semiconductor-related names were mixed: Advantest rose 4.18 percent and Tokyo Electron gained 3.05 percent, while Ibiden was flat. SoftBank Group tumbled 9.95 percent following the debut of Google’s Gemini 3.0, which investors viewed as intensifying competition in the AI ecosystem. Taiwan’s TAIEX outperformed regionally, jumping 1.54 percent to 26,912.17. Chip giant TSMC rose 2.91 percent and MediaTek climbed 3.04 percent, buoyed by sustained AI demand from the U.S. Hon Hai Precision slipped 0.45 percent amid concerns over weaker-than-expected performance at its EV joint venture with Yulon and speculation about the partnership’s future. China’s markets also advanced. The Shanghai Composite Index gained 0.87 percent to 3,870.02, supported by expectations that the Communist Party will unveil major ICT investment plans — such as 6G and cloud infrastructure — at its December economic policy meeting. Smart grid firm Qingdao Topscomm and cloud networking company Raisecom Tech both rose by the 10 percent daily limit. The SZSE Composite jumped 1.53 percent to 12,777.31, driven by biotech shares after Beijing created a new insurance category, the Commercial Health Insurance Innovative Drug List (CHIIDL), easing pathways for new drugs. Hualan Biological surged 11.21 percent, while Sinoma Science climbed 10.01 percent. Hong Kong’s Hang Seng Index was up 0.66 percent at 25,885 as of 4:45 p.m., with Xiaomi rallying 3.9 percent to HK$40.16. 2025-11-25 17:01:40
  • Asian markets ride on Google-powered U.S. tech rally
    Asian markets ride on Google-powered U.S. tech rally SEOUL, November 25 (AJP) - Asian markets climbed Tuesday on another AI-driven rally from the United States — this time powered by Google’s late-cycle breakthrough with Gemini — lifting semiconductor shares across the region. The benchmark KOSPI was up 1.2 percent at 3,892 as of 10:30 a.m., tracking overnight rebounds in the Nasdaq and the Philadelphia Semiconductor Index. Gains were capped ahead of the Bank of Korea’s Monetary Policy Board meeting on Thursday. Foreign investors led the rise with 30.3 billion won (20.5 million dollars) in net purchases, followed by institutions with 14.8 billion won. Retail investors sold 26.1 billion won to lock in profits. The KOSDAQ added 0.76 percent to 863. The U.S. dollar eased to 1,473.1 won, down 2.1 won from the previous close, after fiscal and monetary authorities formed an FX stabilization team with the National Pension Service, one of the world’s largest institutional investors and a major holder of U.S. assets. Samsung Electronics climbed 2.8 percent to 99,400 won, and SK hynix gained 2.1 percent to 531,000 won. The Philadelphia Semiconductor Index jumped 4.6 percent, lifting Nvidia partners globally, though the upside was limited as Gemini 3.0 relies on Google’s own inference chips, reducing immediate spillover demand for external suppliers. The construction sector surged on renewed expectations of a Ukraine ceasefire and post-war rebuilding. Hyundai Engineering & Construction rose 2.85 percent to 61,400 won, and Samsung C&T advanced 3.44 percent to 225,500 won. The sector gained momentum as the U.N. and World Bank estimate more than 524 billion dollars will be needed for Ukraine’s reconstruction over the next decade. Construction equipment stocks retreated after Monday’s sharp gains. HD Hyundai Construction Equipment fell 2.1 percent to 93,500 won. Defense stocks weakened on cooling geopolitical momentum. Hanwha Systems declined 1.37 percent to 46,750 won, and LIG Nex1 slipped 1.52 percent to 388,000 won. Hyundai Rotem, however, rose 0.9 percent to 176,500 won on expectations of potential demand for railway vehicles in Ukraine’s rebuilding phase. Japan’s Nikkei 225 climbed 0.8 percent to 49,021.5, boosted again by semiconductor-related shares. Advantest rose 5.73 percent to 19,365 yen, Ibiden added 2.5 percent to 11,610 yen, and Tokyo Electron gained 3.2 percent to 31,130 yen. Taiwan’s TAIEX rose 1.54 percent to 26,913. TSMC climbed 2.9 percent to 1,415 Taiwan dollars, MediaTek gained 2.61 percent to 1,180 Taiwan dollars, and Hon Hai Precision Industry rose 1.6 percent to 225 Taiwan dollars. Greater China markets also advanced, led by technology shares. The SZSE Composite Index rose 1.2 percent to 12,732, lifted by electric vehicle–related stocks including CATL, which gained 1 percent to 374.5 yuan. Hong Kong’s Hang Seng Index gained 0.9 percent to 25,952. Xiaomi climbed 3.52 percent to 40 Hong Kong dollars, and Alibaba Group Holding added 3.4 percent to 160 Hong Kong dollars. The Shanghai Composite Index edged up 0.46 percent to 3,854, a milder rise than its regional peers. 2025-11-25 11:58:26
  • KOSPI closes lower, defying broad Asian recovery led by Hong Kong gains
    KOSPI closes lower, defying broad Asian recovery led by Hong Kong gains SEOUL, November 24 (AJP) - South Korean shares extended weakness on Monday, becoming the only major Asian market to finish lower. Concerns over the won’s vulnerability, persistent AI bubble narratives, and progress in Russia–Ukraine ceasefire discussions created a triple overhang that erased early gains. The benchmark KOSPI closed 0.19 percent lower at 3,846.06. The index climbed more than 1 percent in early trading but reversed course in the afternoon as selling pressure intensified. It briefly hovered in positive territory around 3:20 p.m., but slipped during the closing auction. The won also weakened further, rising 3.5 won to trade at 1,475.5 per dollar as of 4:30 p.m. Foreign investors, who initially supported morning gains, turned net sellers of 327.5 billion won ($222 million), dragging the index lower. Retail investors also sold 603 billion won, signaling weakened confidence. Institutional investors purchased 947.7 billion won, but their buying was insufficient to offset downward pressure. Market bellwethers diverged. Samsung Electronics rose 2 percent to 96,700 won, marking a rare rebound, while SK hynix slipped 0.19 percent to 520,000 won. The two major Samsung biotech affiliates also moved in opposite directions. Samsung Biologics closed 0.45 percent lower at 1,789,000 won, while Samsung Epis Holdings, newly spun off from Samsung Bioepis, plunged 28.23 percent to 438,500 won, reflecting lingering uncertainty over the carved-out entity’s standalone valuation. Defense stocks retreated following remarks from U.S. President Donald Trump, who urged Ukraine to sign a ceasefire agreement before Thanksgiving. LIG Nex1 fell 1.99 percent to 394,000 won, and Hanwha Systems declined 2.47 percent to 47,400 won. Reconstruction-related names, however, surged. HD Hyundai Construction Equipment, a manufacturer of excavators and heavy machinery, jumped 5.64 percent to 95,500 won. Large construction firms also posted modest gains, with Hyundai Engineering & Construction up 0.67 percent at 59,700 won and Samsung C&T rising 0.93 percent to 218,000 won. Taiwan’s TAIEX edged up 0.26 percent to 26,504.24, supported primarily by financial stocks. Cathay Financial Holding climbed 3 percent to 65.5 Taiwan dollars ($2), and Yuanta Financial Holding gained 1.1 percent to 36.05 Taiwan dollars. Semiconductor heavyweights were mixed. TSMC slipped 0.77 percent to 1,375 Taiwan dollars, while MediaTek added 0.44 percent to 1,150 Taiwan dollars. The Shanghai Composite Index was flat, inching up 0.05 percent to 3,836.77. In contrast, Hong Kong’s Hang Seng Index surged 1.9 percent to 25,695 as of 4:20 p.m., led by Chinese platform giants. Alibaba Group jumped 4.8 percent to 154.7 Hong Kong dollars ($19.9), and Tencent gained 2.1 percent to 623 Hong Kong dollars. Japan’s Nikkei 225 was closed for the Labor Thanksgiving Day substitute holiday. 2025-11-24 17:46:49
  • BOK seen holding rates through early 2026 as won weakens and debt pressures mount
    BOK seen holding rates through early 2026 as won weakens and debt pressures mount SEOUL, November 24 (AJP) - The Bank of Korea is widely expected to keep its key rate unchanged at 2.50 percent this week — and likely through the first half of 2026 — as the steep slide in the Korean won and heavy private-sector debt leave little room for further easing. The Monetary Policy Board meets Thursday for its final rate decision of the year. The base rate was cut twice in the first half, by a combined 50 basis points from 3.00 percent to 2.50 percent, and has stayed on hold since May. The pause came as housing demand reignited ahead of a hawkish incoming government, and as a frenzy for U.S. tech stocks fueled structural weakness in the won and Korean bonds, narrowing policy options for fiscal and monetary authorities. The U.S. dollar traded at 1,476 won on Monday — a level last seen during the global financial crisis in 2009 and again during the presidential impeachment in April — while Korean government bond yields hover above 3 percent. The BOK’s widening rate gap with the U.S. Federal Reserve is contributing to the pressure: the Fed’s benchmark stands at 3.75–4.00 percent, well above Korea’s 2.50 percent. A prolonged U.S. government shutdown has driven investors toward dollar assets, Treasuries, and gold, helping explain why the won continued to weaken even as $2.29 billion flowed into Korean equities. Outbound demand for dollar assets intensifies pressure Korea’s deepening appetite for overseas investments is adding another drag on the currency. According to BOK balance-of-payments data released November 6, outbound portfolio investment by Korean residents surged $11.2 billion in September, outpacing the $9.1 billion in foreign inflows to Korean securities. In short, Koreans bought more foreign assets than foreigners bought Korean ones. Institutional investors mirror the trend. As of August, the National Pension Service allocated 36.8 percent of its assets to overseas equities — nearly triple the 14.8 percent invested at home. Including bonds, overseas assets accounted for 43.9 percent of the NPS portfolio, exceeding its domestic holdings at 39.4 percent. Debt overhang limits BOK’s maneuvering room High household leverage is another constraint on policy. Korea’s household debt reached a record 2,325.8 trillion won ($1.58 trillion) at the end of June, BOK data show. The household-debt-to-net-GDP ratio climbed to 89.7 percent. Housing loans remain the bulk of the load, totaling 1,159 trillion won in the third quarter, while margin loans used for stock leverage rose to 26.85 trillion won as retail investors borrowed aggressively during this year’s KOSPI rally. “Korean outbound investment has become heavily concentrated in equities, and corporate demand for dollar conversion has fallen as exposure to U.S. assets has increased,” said Wi Jae-hyun, economist at NH Futures Research Center. Given expectations of continued won weakness, he said, the BOK has little choice but to stay on hold. Shinyoung Securities researcher Cho Yong-gu also dismissed the likelihood of easing, saying he sees no rate-cut scenario at least until May next year. 2025-11-24 17:37:33
  • Asian shares make mild rebound early Mon after last weeks AI tantrums
    Asian shares make mild rebound early Mon after last week's AI tantrums SEOUL, November 24 (AJP) - Asian markets showed a mild recovery from last week's AI bubble tantrums with key indices pointing to north in early Monday session. South Korea’s benchmark KOSPI was trading 1 percent higher at 3,890 as of 10:30 a.m., recovering part of Friday's near 4-percent dive. Further rises were constrained by expectations of the Bank of Korea signaling extended pause in easing at its final Monetary Policy Board meeting of the year amid jump in the dollar-won rate that has sent the Korean currency at its cheapest level since the 2009 global financial crisis. Institutional investors continued to support the market, buying 187.5 billion won ($127 million). Foreign investors — who dumped 2.4 trillion won on Nov. 21 alone — turned net buyers, picking up 120 billion won so far today. Retail investors sold 302.1 billion won to net profits amid volatile market. The won remained weak. The dollar was trading at 1,471 won at 10:15 a.m., down only 0.9 won from the Friday close despite speculated intervention from authorities. Semiconductor stocks saw another sharp swing. Samsung Electronics climbed 4.2 percent to 99,000 won ($67.2), and SK hynix rose 3.26 percent to 538,000 won. Battery heavyweights, however, struggled to gain traction. LG Energy Solution fell 2.12 percent to 416,500 won, and Samsung SDI slipped 0.6 percent to 286,500 won. Despite strong performance in the energy storage system (ESS) segment, concerns over slowing EV demand and intensifying competition from Chinese battery-makers CATL and BYD weighed on shares. Bio stocks were also weak. Samsung Biologics fell 4 percent to 1,725,000 won following its spin-off of Samsung Bioepis. Shares of Samsung Epis Holdings — newly listed after the spin-off — plunged 21.1 percent to 482,000 won. Japan’s Nikkei 225 was closed on Monday for the substitute holiday for Labor Thanksgiving Day. Taiwan’s TAIEX rose 0.6 percent to 26,588. Chip stocks were largely subdued. TSMC traded at 1,385 Taiwan dollars ($44.1), little changed from last week. MediaTek was also steady at 1,145 Taiwan dollars. Hon Hai Precision Industry slipped 0.9 percent to 223 Taiwan dollars as concerns over an AI bubble persisted. Component makers fared better. Delta Electronics — a major supplier of power electronics and power conversion systems — rose 0.67 percent to 901 Taiwan dollars. Across Greater China, markets were mixed. The Shanghai Composite Index edged down 0.1 percent to 3,830, while Hong Kong’s Hang Seng Index gained 1 percent to 25,487, supported by a rebound in tech shares. Xiaomi climbed 2 percent to 39 Hong Kong dollars ($5). 2025-11-24 11:22:26
  • KOSPI, this years stellar winner, crashes into year-end on AI bubble scare and FX pressures
    KOSPI, this year's stellar winner, crashes into year-end on AI bubble scare and FX pressures SEOUL, November 21 (AJP) - South Korea’s KOSPI has been the strongest-performing major Asian index this year, but this week’s rout has laid bare its structural fragility — an equity market dominated by a few tech bellwethers and increasingly shunned by foreign investors as the won sinks to new lows. Until just days ago, enthusiasm bordered on euphoria. Forecasts that the KOSPI could surge to 5,000 or even 7,000 became commonplace. Even after Friday’s 3.8 percent plunge — the sharpest drop among major Asian markets — the benchmark is still up 60.5 percent for the year, rising from 2,399.49 at the end of 2024 to 3,853.26. Outsized weight of mega-caps and the AI fad Korea’s equity market has become more concentrated than ever. According to Leaders Index, the combined market-cap share of the top five conglomerates — Samsung, SK, Hyundai Motor Group, LG, and HD Hyundai — rose from 45.9 percent at the start of the year to 52.2 percent as of Nov. 3. More than half of the KOSPI is effectively tied to a handful of corporate groups. AI-driven semiconductor giants Samsung Electronics and SK hynix alone account for over a quarter of total capitalization. When they fall, the entire index buckles. On Friday, SK hynix plunged 8.76 percent to 521,000 won, while Samsung Electronics slid 5.77 percent to 94,800 won — the two steepest drops among Korea’s market heavyweights. Traders call it a “follow-the-leaders market,” with sector performance rarely diverging from the megacaps. Even power-related stocks — which should benefit from surging AI electricity demand — remain dominated by conglomerates. Hyundai Motor Group controls key nuclear-construction player Hyundai Engineering & Construction, while HD Hyundai owns transformer leader HD Hyundai Electric. Both fell sharply Friday: HD Hyundai Electric slid 7.85 percent to 751,000 won, and Hyundai E&C dropped 3.73 percent to 59,300 won. The squeeze on smaller companies is intensifying. A joint survey by the Korea Chamber of Commerce and Industry and the Korea Venture Capital Association found that 91.8 percent of VCs dependent on policy financing struggled to raise private capital this year. The IPO market, meanwhile, is frozen. As of Nov. 21, only seven companies had listed on the KOSPI — the same anemic tally as last year, when the index barely moved. FX volatility fans foreign outflows Tech concentration alone does not fully explain the KOSPI’s vulnerability. Taiwan’s TAIEX is similarly top-heavy — TSMC represents roughly 40 percent of the index, and the top five names exceed half of total market cap. Yet Taiwan has suffered far less from the global AI correction. The critical difference is currency risk. On Friday, the Korean won traded at 1,475.1 per U.S. dollar, down nearly 8 percent from the June average of 1,366.92. With Korea’s benchmark rate at 2.50 percent — far below the U.S. Fed Funds target range of 3.75–4.00 percent — the carry disadvantage leaves Korean assets exposed. A persistently weak won also deprives foreign investors of the chance to earn FX gains. Rate hikes are largely off the table. Korea’s economy is expanding at under 1 percent annualized, and household debt remains one of the highest among advanced economies. Bank of Korea Governor Rhee Chang-yong has repeatedly noted the limits of intervention, saying the won’s weakness reflects external forces such as broad dollar strength and heavy Korean retail investment in U.S. equities. “Given Korea’s internal constraints, the country has little choice but to hope for external relief such as U.S. rate cuts,” said Cho Yong-gu, a researcher at Shinyoung Securities. Weaker FX buffers than regional peers South Korea’s foreign-exchange reserves stand at $420 billion, or about 23 percent of GDP — well below Taiwan’s $600.2 billion, which equals 77.4 percent of its GDP. The gap gives Taipei far stronger firepower to defend its currency or cushion capital-flow shocks. 2025-11-21 17:31:38