The benchmark KOSPI rose 0.19% to close at 2,977 points on Thursday, recovering from the earlier losses as strength in autos and chipmakers offset the decline in energy and financial firms. Investor sentiment remained subdued amid concerns over potential U.S. involvement in the Middle East.
Adding to the pressure, the Bank of Korea forecast that headline inflation will likely stay just below its 2% target in the near term. The central bank attributed this outlook to the possible effects of new U.S. tariffs on Chinese goods, which may prompt Chinese exporters to divert shipments to regional markets in order to avoid the impact of Washington’s trade measures. On the upside, notable gains were from SK Hynix (0.20%), and Hyundai Motor (0.73%), while losses were led by Samsung Electronics (-1%) and KB Financial Group (-0.37%).
