28.08.202501:57:50UTC+00SK Stocks Gain on Financial and Auto Strength, BOK Rate Hold

The KOSPI index climbed by 0.24% to approximately 3,194 on Thursday, extending its gains for a second consecutive session, primarily driven by strong performances in the automotive and financial sectors. Noteworthy contributors included Kia Corporation, rising by 2.90%, Hyundai Motor Company with a 1.59% increase, Shinhan Financial Group up by 0.76%, Hana Financial Group gaining 0.49%, and KB Financial Group advancing by 0.46%. Despite these gains, investor caution persists as the market digested the recent monetary policy decision. The Bank of Korea opted to keep its base rate steady at 2.50%, a move aimed at balancing the risks to financial stability with the need for macroeconomic support. This decision underscores the central bank's effort to contain the rapid growth of household mortgage debt while assessing the impacts of recent fiscal stimulus measures. Additionally, the Bank of Korea revised its GDP growth forecast for 2025 downward to 0.9% from 1.8%, indicating weaker-than-anticipated economic momentum, which dampened broader market sentiment and curtailed potential gains.