Record M2 fuels weak won structure, binds policy for Seoul authorities SEOUL, December 09 (AJP) - South Korea's broad money supply has ballooned to levels last seen during the pandemic stimulus peak, and the liquidity glut is weighing heavily on the won while narrowing policy maneuvering room for authorities. M2 money supply, which includes bonds, time and savings deposits, and equity-type deposits, grew 8.5 percent to a record 4,430.5 trillion won ($3.01 trillion) as of September, Bank of Korea (BOK) data showed. The growth far outpaces Korea’s sub-1 percent economic growth and is the steepest since November 2021, when fiscal and monetary stimulus was deployed at full scale to fight the pandemic recession. Twin fiscal and monetary easing, asset inflation driven by hectic stock and housing purchases, and a widening current-account surplus all contributed to the extraordinary liquidity build-up. Korea’s current-account surplus from January to October reached 89.58 billion dollars, the highest ever for the period and on track for an annual record of 115 billion dollars. The supplemental spending package approved in June added further liquidity, including 13.9 trillion won in consumption coupons across two rounds, according to the Korea Development Institute. Korea’s M2 also counts Exchange Traded Funds (ETFs), unlike other countries. ETF balances swelled alongside the near 70-percent rally in the KOSPI so far this year. Even excluding ETFs, M2 growth stands at 6.3 percent, still sharply above the U.S.’s 4.6 percent and more than three times Japan’s 1.8 percent. BOK Governor Rhee Chang-yong acknowledged in a November rate briefing that “looking at the money flowing into the stock market, foreign exchange market, and real estate currently, it is true that a lot of liquidity has been released.” The classic rule of thumb is that too much money supply dilutes currency value. Experts argue the imbalance reflects policy failures, as radical stimulus inflated asset prices more than it strengthened the underlying economy. Former Financial Services Commission Chairman Kim Seok-dong pointed to the world’s highest level of household debt as the structural outcome of this misalignment. Without remedying household leverage, which restricts both upward and downward policy flexibility, he said, the weak-won structure cannot be resolved. Household loans reached an all-time high of 1,845 trillion won as of September. The household debt-to-GDP ratio stood at 89.7 percent in the second quarter, the second-highest globally. Mortgage loans accounted for 1,159.6 trillion won, more than 60 percent of total household loans, underscoring persistent demand for housing. The stock boom added to the pressure: margin loan financing jumped to 27 trillion won as of December 5, up 68.5 percent from six months earlier, according to the Korea Financial Investment Association. Analysts warn that the rapid monetary expansion risks stoking inflation and strengthening the debt cycle, further undermining the currency. The won has hovered around 1,470 per dollar for about a month, roughly 8 percent weaker than in June. Prolonged fixation in the upper 1,400 range, or a move toward 1,500, would raise concern for an economy dependent on imported energy and materials. Inflation has remained above 2 percent for three consecutive months, rising 2.4 percent in October from a year earlier. Fuel prices have also jumped. The average gasoline price in Seoul reached 1,807 won per liter on December 7, up more than 80 won from early October, according to KNOC’s Opinet. Under textbook conditions, defending the currency would require raising the policy rate. But the BOK faces a bind: growth is crawling, prices remain elevated, and household leverage makes additional tightening risky. As pressure builds, excess domestic liquidity has begun to escape through foreign exchange markets. Korean nationals’ overseas stock purchases surged to 18 billion dollars in October, more than double September’s 8.5 billion and six times the 2.93 billion dollars foreign investors deployed into Korean stocks. Institutional outflows add structural pressure. The National Pension Service allocates 37.3 percent of its assets to overseas equities and 58 percent when including bonds and alternatives, creating chronic demand for foreign currency. Authorities warn that textbook metrics alone will not calm the market. KB Kookmin Bank economist Lee Min-hyuk noted that Korea’s ratio of short-term foreign debt to foreign reserves is 38.3 percent, far below the 286 percent recorded at the height of the 1997 crisis. But he cautioned that leaving the weak-won structure unattended risks unnecessary FX market spending and, eventually, erosion of foreign confidence. 2025-12-09 14:02:15

Asian markets remain reserved in FOMC week SEOUL, December 09 (AJP) - Asian equity markets remained cautious ahead of the Federal Reserve’s Federal Open Market Committee (FOMC) meeting this week, with investors bracing for any signal that may accompany the widely expected interest-rate cut. Despite Seoul’s show of resolve — underscored most recently by a rare meeting between the prime minister and the Bank of Korea governor — the dollar ended its brief decline and turned upward, gaining 1.4 won to 1,470.90 won per dollar. South Korea’s KOSPI is trading 0.6 percent lower at 4,128.6 as of 10 a.m. Foreign investors are selling 183.9 billion won versus retail investors’ net buying of 117.7 billion won and institutional buying of 51.3 billion won. Blue-chip names are under pressure. Samsung Electronics is down 0.65 percent at 108,800 won, a relatively mild decline thanks to rising prices in legacy semiconductors, particularly conventional DRAMs. SK hynix, more exposed to external sentiment given its concentration in high-value chips such as HBM, is trading 2.25 percent lower at 564,000 won. LG Energy Solution, which jumped the previous day after securing a 2 trillion won electric-vehicle battery deal, is 2 percent lower at 442,000 won. Rival Samsung SDI is down 1.59 percent at 309,000 won. Among the day’s gainers is HD Hyundai Heavy Industries, rising 6.45 percent to 579,000 won, buoyed by news of its planned shipyard project in India’s Tamil Nadu region and expectations that it could gain an edge in the Korea Destroyer Next-Generation (KDDX) program. Japan’s Nikkei 225 is little changed at 50,532.07, stabilizing as U.S. semiconductor stocks rose overnight. Nvidia partner Ibiden is 3.4 percent higher at 13,175 yen (84.51 dollars), while Tokyo Electron is up 1.36 percent at 33,700 yen. But the yen carry-trade pressure persists: Mitsubishi Estate is down 2.4 percent at 3,728 yen, and Tokyu Fudosan Holdings is down 2.45 percent at 1,416 yen. Taiwan’s TAIEX is 0.3 percent lower at 28,210. TSMC is down 0.3 percent at 1,490 Taiwan dollars (47.75 dollars) on profit-taking, and MediaTek is 0.35 percent lower at 1,435 Taiwan dollars. On the mainland, the Shanghai Composite Index is steady at 3,920, while the Shenzhen Component is 0.3 percent lower at 13,291. Hong Kong’s Hang Seng Index is trading 0.2 percent lower at 25,702. 2025-12-09 11:32:42

Asian markets reserved in FOMC week, Japan GDP disappoints SEOUL, December 08 (AJP) - Cautious mood overwhelmed the Asian market opening for the week as investors awaited the rate move and direction signal from the U.S. Federal Open Market Committee (FOMC) meeting later this week. South Korea's KOSPI is trading at 4,103 as of 11:00 a.m. Monday, unchanged from the end of last week. Foreign investors, selling 278.7 billion won ($189 million), and institutions, selling 124.5 billion won, are driving the weakness. Retail investors are buying 399.1 billion won, looking for opportunities. The dollar dropped below 1,470 won, driven by customary year-end dollar-selling for book-closing. Samsung Electronics rose 0.8 percent to 109,400 won on expectations for the chipmaker to retake the No. 1 position in the DRAM market, given the bigger margin of rise in legacy chips. SK hynix slipped 1.29 percent to 537,000 won as its HBM-focused portfolio gives it less room to benefit from the mass-market DRAM upturn. Nuclear power-related stocks are struggling. Doosan Enerbility is trading 4.3 percent lower at 77,000 won, and Korea Electric Power (KEPCO) is 2.1 percent lower at 51,100 won, driven by a combination of factors — the government’s earlier statement prioritizing renewable energy over nuclear power, and the view that the power efficiency of TPUs is up to four times better than GPUs. Some companies are benefiting from favorable news. LG Energy Solution, the No. 1 secondary battery company, is trading 3.2 percent higher at 440,000 won, following news of a $1.4 billion electric-vehicle battery supply contract with Mercedes-Benz. The KOSDAQ is 0.17 percent higher at 923. Its market capitalization briefly surpassed 500 trillion won in early trading before receding to the high-400 trillion-won range. Alteogen, the top market-cap biotech firm, is trading 2.2 percent higher at 466,500 won, reflecting expectations that its business momentum will improve after its decision to transfer its listing from the KOSDAQ to the KOSPI. Japan’s Nikkei 225 is trading 0.3 percent lower at 50,338. Japanese GDP contracted 0.6% sequentially in the third quarter, worse than market expectations of a 0.4% contraction. The market is showing a mixture of anxiety about recession and hope that Prime Minister Sanae Takaichi’s cabinet will implement stronger stimulus measures. Toyota rose 0.59 percent to 3,050 yen and Nissan gained 2 percent to 378 yen, while semiconductor names weakened across the board with Advantest down 1.8 percent to 19,845 yen and Tokyo Electron down 1.35 percent to 32,690 yen. Taiwan’s TAIEX is trading 0.45 percent higher at 28,106. TSMC is leading the rally, trading 1.03 percent higher at NT$1,475, while MediaTek is 1.4 percent lower at NT$1,410, limiting overall gains. Chinese markets show mixed results. The Shanghai Composite Index is trading 0.15 percent higher at 3,908, and the Shenzhen Component is 0.36 percent higher at 13,194, helped by expectations of central bank stimulus. In contrast, Hong Kong’s Hang Seng Index — more sensitive to global investment flows — is 0.35 percent lower at 25,995, weighed by the FOMC uncertainty and Japan’s GDP data. 2025-12-08 11:56:35

Asian stocks mostly gain while Nikkei slips on interest rate concerns SEOUL, December 5 (AJP) - Asian stock markets closed mixed on Friday, with most bourses, including South Korea's, posting gains, while Japan slipped amid uncertainty over its benchmark interest rate. In Seoul, the benchmark KOSPI closed at 4,096.13, up 1.68 percentage points from the previous session. Foreign investors buoyed the market with net purchases of stocks worth 770.7 billion Korean won ($524 million). The inflow appears to be driven by investors seeking other opportunities amid rising uncertainty over Japan's monetary policy. Institutions led the rally with net purchases of 1.2 trillion won, while retail investors took profits by selling 1.94 trillion won. The won strengthened against the greenback, trading at 1,470, lifted by foreign capital inflows into the market. The hottest stock on the KOSPI was Hyundai Motor, which surged a whopping 11.11 percent to 315,000 won, recording a new high. The surge appears to reflect relief over a 15-percent tariff being retroactively applied after Seoul and Washington finalized their trade talks, along with expectations of accelerated development of in-house autonomous driving technologies. LG Electronics also continued its upward trend, closing 5.17 percent higher at 99,700 won, reflecting strong investor confidence in its next-generation growth strategies including its Software-Defined Vehicle (SDV) initiative and automotive electronics business. Samsung Electronics closed 3.14 percent higher at 108,400 won, approaching the 110,000-won mark, while SK hynix edged up just 0.37 percent to 544,000 won. The junior KOSDAQ, after briefly surpassing 5 trillion won in mid-day trading on hopes for Seoul's market stimulus, instead closed 0.55 percent lower at 924.74. Japan's Nikkei 225 fell 1.03 percent to 50,503, pressured by Bank of Japan Governor Kazuo Ueda's comments the previous day hinting at a cautious approach to raising interest rates. Major stocks fell across the board, with Toyota dropping 2.71 percent to 3,019 yen ($19.53) and Sony sliding 2.24 percent to 4,320 yen. Chip-related stocks mostly declined, with Advantest falling 2.22 percent to 20,235 yen and Tokyo Electron dropping 2.54 percent to 32,960 yen. But semiconductor circuit board maker Ibiden surged 6.77 percent to 12,695 yen. Taiwan's TAIEX closed 0.67 percent higher at 27,980.89. TSMC performed well, closing 1.04 percent higher at 1,460 Taiwan dollars ($46.68). MediaTek also closed 1.42 percent higher at 1,425 Taiwan dollars. With the Shanghai Composite Index trading 0.66 percent higher at 3,900 as the end of trading, Chinese markets rallied on expectations of economic stimulus measures, supported by selective buying in technology stocks. Chinese markets rallied on stimulus expectations and selective tech stock buying, with the Shanghai Composite Index closing about 0.66 percent higher at 3,900. The SZSE Component rose 0.98 percent to close at 13,133 and CATL also gained 1.48 percent to finish at 389 yuan ($55.01). In Hong Kong, the Hang Seng Index gained 0.47 percent to 26,059, with Xiaomi climbing 2 percent to HK$42.82 ($5.50) amid strong buying in the tech sector. 2025-12-05 16:56:36

Korea's C/V surplus halves, outbound stock invest outsized inbound by a factor of 6 SEOUL, December 05 (AJP) - South Korea posted its 30th straight monthly current account surplus in October, but the headline figure shrank to a six-month low as reduced factory activity during the Chuseok holiday dampened trade, according the central bank data, which also showed Korean outbound stock purchases overwhelming foreign inflows by a factor of six to explain the stubbornly weak Korean won against the U.S. dollar. The Bank of Korea said Friday that the country recorded a $6.81 billion current account surplus in October, down sharply from $13.47 billion in September and from $9.4 billion a year earlier. Korea’s September–October trade patterns typically hinge on the timing of the Chuseok holiday, with exports front-loaded ahead of factory shutdowns. Even with the pullback, the cumulative surplus for the first 10 months reached a record $89.58 billion—17 percent higher than a year earlier—putting Seoul on track to hit the $115 billion milestone for 2025. The services account logged a $3.75 billion deficit despite a record influx of inbound tourists. The travel balance swung deeper into the red, widening to $1.36 billion from $910 million in September, as a stronger dollar inflated Koreans’ overseas spending. The goods account recorded a surplus of $7.82 billion, half of September’s $14.24 billion. The Bank of Korea said the drop largely reflected the normalization of consumption tax flows, which had surged ahead of the Chuseok holiday. Customs-cleared exports rose 3.5 percent on year to $59.5 billion. Semiconductor shipments jumped 25.2 percent to $15.86 billion, while vessel exports soared 135.8 percent to $4.62 billion. Petroleum products also posted an 11.7 percent gain to $3.84 billion, despite intensifying low-cost competition from China. The primary income account booked a $2.94 billion surplus, buoyed by Koreans’ growing investment income overseas. Dividend income alone reached $2.29 billion, underscoring heavy equity allocations abroad. In the financial account, net assets increased by $6.81 billion as outbound investment continued to dominate. Direct overseas investment totaled $1.88 billion, far outpacing the $150 million that foreigners invested in Korea. Korean nationals’ overseas equity purchases surged to $18 billion in October—more than double September’s $8.5 billion and six times the $2.93 billion foreign investors deployed into Korean stocks. Reserve assets rose by $6.67 billion, up from $4 billion in September, suggesting stepped-up efforts by authorities to counter won weakness after the currency moved past 1,450 per dollar and continued south in October. As of 9:30 a.m. Friday, the won was trading at 1,474 per dollar. 2025-12-05 11:28:45

Nikkei soars, KOSDAQ active with robotics helped by Trump's mention SEOUL, December 04 (AJP) - Japanese stocks defied concerns over a potential unwinding of the yen carry trade to push back above the 50,000-point threshold, while activity was subdued across most of Asia. South Korea’s KOSPI closed 0.19 percent lower at 4,028.51 on Thursday. After sliding more than 1 percent in early trading, the index pared losses in the afternoon as foreigners took profits and nearly all U.S. megacap tech stocks—excluding AMD—declined overnight. Foreign investors drove the weakness, net selling 696.5 billion won ($472.5 million). Retail investors net bought 560.8 billion won, and institutions purchased 131.7 billion won, positioning for the next upswing. The KOSDAQ slipped 0.23 percent to 929.83, though its market cap is nearing the 500-trillion-won milestone amid expectations of government support measures for the secondary market. The won continued to weaken, losing 3 won to 1,470 per dollar as of 5:10 p.m., pressured by foreign outflows following heavy stock sales during the session. Bond yields were mixed. The three-year government bond yield fell 1.6 basis points to 3.025 percent but remained above 3 percent. The 10-year yield edged up 0.8 basis points to 3.376 percent. Samsung Electronics rose 0.57 percent to 105,100 won after securing a contract to supply HBM4 memory for Google’s next-generation TPU production starting in 2026. SK hynix fell 1.81 percent to 542,000 won, weighed down by weak earnings at Kioxia, the Japanese NAND maker it has invested in, and softer AI-related demand from its key customer Microsoft. Losses on the main bourse were softened by a sudden rally in robotics stocks, which surged on rumors that U.S. President Donald Trump may sign an executive order promoting the robotics industry. Hyundai AutoEver jumped 27.19 percent to 283,000 won. Hyundai Motor—the parent of AutoEver and Boston Dynamics—climbed 6.38 percent to 283,500 won. Doosan Robotics rose 7.82 percent to 82,700 won. LG Electronics also gained, closing 5.92 percent higher at 94,800 won, supported by optimism around its automotive electronics and software-defined vehicle businesses. The KOSDAQ likewise avoided a steeper decline thanks to robotics-linked names. Rainbow Robotics, in which Samsung Electronics is the largest shareholder, rose 6.3 percent to 472,500 won on the Washington headlines. Japan’s Nikkei 225 closed 2.33 percent higher at 51,028.42, logging the largest gain among major Asian indices. Export-heavy automakers advanced on expectations of a U.S. Federal Reserve rate cut. Toyota added 3.26 percent to 3,103 yen ($20), while Honda rose 2.93 percent to 1,548 yen. Robot makers also rallied sharply, with Fanuc soaring 12.98 percent to 5,953 yen and Yaskawa Electric jumping 11.37 percent to 4,769 yen. Taiwan’s TAIEX closed at 27,795.71, unchanged from the previous session. Chinese markets ended mixed. The Shanghai Composite finished flat at 3,875.79 amid lingering recession concerns, while the Shenzhen Component rose 0.4 percent to 13,006.72. Battery giant CATL climbed 1.93 percent to 383.35 yuan ($54.27), leading gains. Hong Kong’s Hang Seng Index ended 0.68 percent higher at 25,935.90, with Xiaomi up 4.33 percent at 41.96 Hong Kong dollars ($5.39). 2025-12-04 17:25:27

Major Asian markets climb; China slips on deepening recession fears SEOUL, December 03 (AJP) - Asian equity markets ended mixed on Wednesday, with South Korea, Japan and Taiwan advancing on rising expectations of a U.S. interest rate cut, while China-related indices slid across the board amid renewed recession worries. The Korean won closed at 1,467.8 per dollar, up 1.7 won, supported by sustained foreign and institutional buying on the KOSPI and what traders described as “steady, visible intervention” by financial institutions and FX authorities. Government bond yields rose broadly, with the three-year sovereign yield finishing 1.9 basis points higher at 3.041 percent in the afternoon session. South Korea’s benchmark KOSPI climbed 1.04 percent to 4,036.30, reclaiming the 4,000-point threshold as a two-day rally gained traction. Institutions led the gains with 756.5 billion won ($515 million) in net purchases, followed by foreign investors who bought a net 159 billion won. Retail investors took profits, selling 898.7 billion won. Market leaders were mixed. Samsung Electronics rose 1.06 percent to 104,500 won, extending gains for a second day. SK hynix slipped 1.08 percent to 552,000 won after its Japanese NAND affiliate Kioxia posted weaker-than-expected earnings. Samsung C&T closed 9.35 percent higher at 245,500 won following news that Hong Ra-hee, former director of the Leeum Museum of Art, completely gifted her entire stake in the company to her son and Samsung Group Chairman Lee Jae-yong. Hong's decision raised expectations that Chairman Lee's management control defense line would be significantly strengthened, leading the Samsung Group to pursue a more consistent strategy. Nuclear-energy names also spiked after U.S. Commerce Secretary Howard Lutnick said Washington would prioritize nuclear plant projects funded jointly with Korea and Japan. Hyundai Engineering & Construction jumped 6.98 percent to 70,500 won, while Doosan Enerbility rose 4.53 percent to 78,400 won. Theme stocks related to the Seoul Express Bus Terminal redevelopment surged after the Seoul Metropolitan Government selected the developer for the project. Chunil Express, the second largest shareholder of the terminal, surged 29.97 percent to 399,000 won, and Shinsegae, the selected developer, closed 4.19 percent higher at 248,500 won. Chunil Express, however, has been designated as an investment warning stock after seeing an extraordinary surge of over 700 percent since November 18, despite the official start of the development project being yet to commence. Japan’s Nikkei 225 rose 1.14 percent to 49,864.68, led by semiconductor-related names. Advantest soared 5.3 percent to 20,860 yen ($134.13), and Tokyo Electron gained 4.73 percent to 32,780 yen. Kioxia Holdings slid 2.24 percent to 9,011 yen on disappointing earnings. Export-heavy autos fell as a BOJ rate hike appeared increasingly probable, with Toyota down 1.31 percent at 3,005 yen and Honda off 0.76 percent at 1,504 yen. Taiwan’s TAIEX gained 0.83 percent to 27,793.04 after signals of a nearing U.S. rate cut buoyed risk sentiment. TSMC, which represents more than 40 percent of the market, climbed 1.4 percent to 1,450 Taiwan dollars ($46.32). MediaTek fell 1.06 percent to 1,400 Taiwan dollars as profit-taking continued for a second day. Chinese markets weakened uniformly. The latest manufacturing PMI contracted for an eighth straight month, reinforcing concerns that China remains trapped in recessionary conditions. The Shanghai Composite Index fell 0.51 percent to 3,878, while the Shenzhen Component slipped 0.78 percent to 12,955.25. Hong Kong’s Hang Seng Index traded 1.23 percent lower at 25,773 as of 4:30 p.m. 2025-12-03 16:53:49

Korea's GDP fared better than expected in Q3, nominal GNI falls on sharp won weakening SEOUL, December 03 (AJP) - South Korea's economy grew faster than earlier estimated on the back of stronger capital investment, but its nominal income declined against a strong dollar, reflecting the Korean won’s status as one of the weakest performers among major traders. According to the Bank of Korea (BOK) on Wednesday, real gross domestic product increased 1.3 percent from the previous quarter — the strongest since the fourth quarter of 2021 — accelerating from the 0.7 percent gain in the second quarter and 1.2 percent in preliminary data. Against a year-ago period, real GDP expanded 1.8 percent, setting the economy on track to meet this year's revised annual growth target of 1.0 percent. The economy added 1.6 percent in the second quarter and zero growth in the first. The upward revision owed to increases in construction investment (0.6 percent), facilities investment (2.6 percent), and intellectual property investment (1.2 percent), the BOK said. Other data on the domestic front also showed improvements. Private consumption grew 1.3 percent, driven by gains in both goods, such as passenger cars, and services, such as dining out. Government expenditure increased by 1.3 percent, centered on the cost of goods and health insurance benefits. The external environment, however, turned dim. Exports expanded 2.1 percent, slowing from the 4.5 percent growth in the second quarter, while imports also slowed to 2.0 percent from 4.2 percent in the second quarter. In nominal terms, GDP added just 0.7 percent, compared to 2 percent in the second quarter, placing gross operating surplus growth at 0.8 percent versus 4 percent previously, due to the strength of the dollar against the Korean won, which fell around 6 percent in the third quarter. The GDP deflator, which reflects the level of prices, rose by 2.7 percent. The gross national income (GNI) in nominal terms decreased 0.3 percent from the previous quarter. The fall was significantly impacted by the shrinkage in net factor income from the rest of the world (NFIA) — the difference between the country’s earnings from foreign investments and payments made to foreign investors — which fell from 14.1 trillion won ($9.6 billion) to 8 trillion won. In real terms, GNI rose 0.8 percent from the previous quarter, marking a slight slowdown from the 1 percent increase recorded in the second quarter. The deterioration in the terms of trade also contributed to sluggish GNI, with the real loss on terms of trade widening from 8.6 trillion won ($5.86 billion) to 10.3 trillion won. Real net factor income from the rest of the world also added downward pressure, declining from 10.2 trillion won in the second quarter to 8.6 trillion won in the third quarter. Gross national income fell 0.1 percent. Both the savings rate and the investment rate declined, painting a darker picture for the economy moving forward. The gross saving ratio fell 1.2 percentage points to 34.4 percent, while the net household saving ratio inched up 0.1 percentage point to 8.9 percent. The gross national investment ratio also fell 0.2 percentage point sequentially to 28.6 percent. 2025-12-03 11:47:37

Asian markets mixed on yen carry trade fears as KOSPI outperforms SEOUL, December 02 (AJP) - Asian equity markets were mixed on Tuesday as investors weighed the growing risk of a yen carry trade unwind sparked by rising expectations of a Bank of Japan interest rate hike. Korea’s KOSPI stood out as the region’s strongest performer, drawing sizable foreign inflows even as most other Asian benchmarks stalled or slipped. The Korean won strengthened slightly to 1,468.9 per dollar, up 2 won from the previous session, supported by foreign capital moving into Seoul’s markets and a renewed push by financial authorities urging exporters and institutions to convert dollar earnings into won. Still, analysts noted that Korea’s M2 money supply growth remains higher than in other major economies, suggesting that currency stabilization will require more time and potentially further policy measures. The KOSPI jumped 1.9 percent to 3,994.93, briefly approaching the psychologically significant 4,000 line as investors repositioned amid heightened volatility in Japan. Monday’s trade data, which showed a surplus, added momentum. Foreign investors bought 1.21 trillion won ($800 million) in Korean equities, while institutions purchased 393 billion won. Retail investors sold 1.58 trillion won, locking in recent gains. Large-cap technology stocks led the advance. SK hynix climbed 3.72 percent to 558,000 won, reclaiming the 550,000-won level for the first time in weeks. Samsung Electronics added 2.58 percent to 103,400 won, consolidating its hold above the symbolic “100,000-Electronics” threshold. Carmakers, which had slumped the previous day, rebounded sharply: Hyundai Motor rose 4.52 percent to 266,000 won and Kia gained 4.19 percent to 117,000 won. Shipping stocks also surged following the latest trade data, with Pan Ocean up 11.17 percent, Korea Line rising 9.04 percent, and Hyundai Glovis climbing 3.93 percent. Japan’s Nikkei 225 ended largely flat at 49,303.45, giving back early gains as BOJ tightening expectations solidified. Financial stocks climbed on the prospect of higher rates, with Mitsubishi UFJ Financial Group up 2.46 percent. But analysts cautioned that a full-scale unwind of yen-funded carry positions could trigger broader market stress. Japanese industrial and robotics names were notable gainers. Fanuc rose 6.51 percent, and Yaskawa Electric advanced 4.67 percent, reflecting optimism that the export downturn may be bottoming and capital expenditure could soon pick up. Exporters that had benefited from yen weakness, including Toyota, retreated, with the automaker falling 1.2 percent. Taiwan’s TAIEX mirrored Korea’s strength, closing 0.81 percent higher at 27,564.27, led by TSMC, which gained 1.42 percent. MediaTek, after a sharp rally in recent days, slipped 2.08 percent on valuation concerns. Mainland Chinese markets remained among the region’s weakest as investors assessed the potential impact of a BOJ rate hike on regional liquidity. The Shanghai Composite fell 0.42 percent to 3,897.71, and the SZSE Component declined 0.68 percent to 13,056.70. Hong Kong’s Hang Seng Index, which touched 26,264 earlier in the day, pared gains to trade 0.14 percent higher at 26,067 as of 4:40 p.m. 2025-12-02 17:06:45

South Korea's daily inflation nears 3% in November on steep won weakening SEOUL, December 02 (AJP) - South Korea’s inflationary pressure strengthened in November, with daily living costs hovering near 3 percent as a sharply weaker won pushed up fuel and import prices while discouraging overseas travel and spending, government data showed Tuesday. According to the consumer price index (CPI) released by the Ministry of Data and Statistics, headline inflation rose 2.4 percent from a year earlier, matching October’s on-year gain. Fuel prices jumped 5.9 percent on year and 3.5 percent on month, reflecting the dollar-won exchange rate lingering at crisis-level territory. The dollar climbed as high as 1,475.2 won last month — nearly 7 percent higher than two months earlier. Diesel prices rose 10.4 percent and gasoline gained 5.3 percent. Although Dubai crude fell about 4.5 percent — from $66.2 per barrel in late October to $63.2 in late November — domestic petroleum prices nevertheless increased to 1,718.1 won per liter from 1,663.2 won a month earlier due to the weaker won and the gradual phase-out of fuel-tax cuts. Processed food prices rose 3.3 percent on higher import-input costs, while prices of agricultural, livestock and fishery goods surged 5.6 percent on poor weather conditions. Core inflation, which excludes food and energy, eased to 2.0 percent from 2.2 percent in October as service-sector prices softened on weakening demand. Housing rents — including jeonse lump-sum leases and monthly rentals — continued their upward trajectory, rising 0.9 percent on year. The Cost of Living Index (CLI), which tracks 144 frequently purchased items, accelerated to a 2.9 percent on-year increase from 2.5 percent in October. Expected inflation for the next 12 months remained in the mid-2 percent range. Following the release, the Bank of Korea said it was monitoring price trends “with vigilance,” noting that overall inflation has stayed in the mid-2 percent range for a second consecutive month while daily living costs have spiked. In the bond market, the 3-year Treasury yield closed the early Tuesday session 2.0 basis points lower at 3.025 percent, while the 10-year yield slipped 1.4 basis points to 3.373 percent. The central bank kept its policy rate unchanged at 2.5 percent at its final meeting of the year on Nov. 27, citing a policy bind created by foreign-exchange volatility and housing-market vulnerabilities. 2025-12-02 16:23:28