KOSPI Closes 1.6% Higher as Won Briefly Strengthens Below 1,350 per Dollar

South Korean stocks rallied on Sept. 4 as stabilizing U.S. Treasury yields helped lift Wall Street, pushing the KOSPI into the 6,680 range.

The benchmark closed at 6,687.21, up 1.64% from the previous session. It opened 1.14% higher at 6,654.36 and climbed as much as 2.53% during the day. Foreign investors bought a net 503.4 billion won, while institutions purchased 1.669 trillion won. Retail investors sold a net 3.7225 trillion won.

The stronger market also eased volatility. The KOSPI 200 volatility index, known as South Korea’s fear gauge, fell 7.28% to 39.33. It closed below 40 for the first time since Feb. 11, a period of about seven months.

Wall Street’s three major indexes had gained more than 1% as U.S. Treasury yields remained stable. Christopher Waller, a Federal Reserve governor known for favoring monetary easing, was cited as a major influence on the move.

Large-cap shares advanced, including Samsung Electronics, up 2.20%, and SK Hynix, up 3.20%. SK Square rose 6.12%, Samsung Electro-Mechanics gained 3.93%, and Hanwha Aerospace added 0.76%.

The KOSDAQ ended 2.95% higher at 813.50, reversing a four-session losing streak. In the Seoul foreign exchange market, the won closed at 1,350.4 per dollar, 8.9 won stronger than the previous day. It briefly strengthened into the 1,340 range, its strongest level in one year and two months.