South Korean Financial Market Update: Stocks Dip Following Nvidia Restrictions

Seoul – South Korean equities experienced a slight decrease on Thursday, despite the central bank’s decision to maintain stable interest rates, a move that aligned with widespread market forecasts.

The Korean won saw a marginal recovery, trading at 1,418.9 shortly after the Bank of Korea’s monetary policy announcement.

As of 0053 GMT, the KOSPI benchmark index had increased by 8.98 points, reflecting a 0.37% rise, to reach 2,456.41.

The Bank of Korea’s decision to hold the policy interest rate steady is viewed by markets as a measure to support the fluctuating won, especially as Washington’s initiatives to restructure global trade pose potential risks to economic advancement.

Investors are keenly observing the tariff policies of the United States, which are anticipated to be a primary discussion point during Governor Rhee Chang-yong’s press briefing, scheduled for 0210 GMT.

Most major stocks demonstrated gains, including those in the semiconductor, automotive, biopharmaceutical, and steel manufacturing sectors.

Of the 928 issues traded, 531 stocks showed an increase, while 334 experienced a decline.

Foreign investors recorded net sales of shares amounting to 101.1 billion won (approximately $71.12 million USD).

On the domestic settlement platform, the won was valued at 1,420.1 against the dollar, indicating a 0.30% decrease from its prior closing value of 1,415.8.

In the money and debt markets, June futures for three-year treasury bonds declined by 0.01 points to settle at 107.61.

The yield on the most active three-year Korean treasury bond edged up by 0.1 basis points to 2.344%, whereas the yield on the ten-year benchmark bond fell by 0.3 basis points to 2.631%.