South Korean stocks surge on battery and biopharma gains

South Korean stocks showed a positive trend on Monday, driven by the surge in battery and biopharmaceutical shares following strong economic indicators. The KOSPI index closed higher by 0.23% at 2,804.31, with exports growing for the ninth consecutive month in June, supported by robust demand for semiconductor chips and automobiles.

In June, South Korea's manufacturing sector witnessed accelerated growth, reaching its highest level in 26 months due to a surge in new orders driven by improving global demand. Market analysts noted a rebound in stocks that had previously experienced significant losses, particularly in rotational trading. LG Energy Solution and Samsung SDI, both battery manufacturers, saw notable gains of 6.28% and 3.67%, respectively. Biopharmaceutical companies Samsung Biologics and Celltrion also recorded increases of 4.40% and 5.62%.

While automakers faced declines, chipmakers remained relatively stable. Out of 930 traded stocks, 381 advanced while 495 declined. Foreign investors were net sellers of shares worth 64.7 billion won ($46.91 million) on the main board. The won was quoted at 1,379.3 per dollar, marking a 0.19% decrease from the previous close. Trading hours for the dollar-won pair were adjusted to 9 a.m. to 2 a.m. from Monday onwards.

In the money and debt markets, September futures on three-year treasury bonds dropped by 0.10 points to 105.10. The yield on the three-year Korean treasury bond rose by 7.5 basis points to 3.218%, while the benchmark 10-year yield increased by 4.5 basis points to 3.327%.

The positive performance of South Korean stocks on Monday was driven by strong economic indicators, particularly in the battery and biopharmaceutical sectors. Despite some declines in automakers, the overall market showed resilience, with chipmakers remaining stable. The increase in exports and manufacturing growth signal a promising outlook for the South Korean economy. Investors will be closely monitoring these developments in the coming days.