SEOUL, December 19 (AJP) - Asian equities closed higher on Friday as investors welcomed signs of cooling U.S. inflation and the Bank of Japan’s long-anticipated interest rate hike, which helped clear a major policy overhang across the region.
The BOJ’s move allowed markets to look past fears of a disorderly yen carry-trade unwind — at least for now — lifting benchmark indices across Asia.
In Seoul, the KOSPI rose 0.65 percent to close at 4,020.55, reclaiming the 4,000 level. Institutional investors led the advance, snapping up a net 858.3 billion won ($580 million) in shares, more than offsetting combined selling by foreign and retail investors.
The Korean won, however, remained fragile, ending the session at 1,479.3 per dollar, down 2.8 won as of 3:45 p.m., despite a brief intraday rebound.
The BOJ raised its short-term policy rate from 0.5 percent to 0.75 percent — the highest level in 30 years — supporting the yen and exerting residual pressure on the won. A temporary suspension of South Korea’s foreign-exchange stability levy, aimed at encouraging FX inflows including dollars, has yet to show a meaningful impact.
Bond yields in Seoul edged higher, with the 10-year government bond yield rising three basis points to 3.342 percent.
Stocks within the Hyundai Motor Group saw sharp rotation. Hyundai AutoEver surged 18.45 percent to 305,000 won, fueled by investor optimism that the group will accelerate its push into robotics and software-defined vehicles (SDVs). Hyundai Motor gained 2.12 percent, while Hyundai Mobis rose 4.12 percent.
Semiconductor heavyweights lagged the broader market. Samsung Electronics fell 1.21 percent to 106,300 won, and SK hynix declined 0.91 percent, as sentiment was weighed down by concerns over a looming supply glut from Chinese manufacturers flooding the market with legacy DRAM chips, potentially pressuring prices later this year.
Hanwha Group also stood out. Hanwha Ocean climbed 5.8 percent on news of a new LNG carrier contract, while Hanwha Systems jumped 10.93 percent amid reports it will supply advanced electronic displays for Boeing’s F-15 fighter jets.
The tech-heavy KOSDAQ rose 1.55 percent to 915.27, buoyed by renewed biotech momentum. Rznomics, an RNA-editing specialist, hit its daily 30 percent limit to close at 117,000 won on its second day of trading. Index heavyweight Alteogen gained 3.94 percent.
In Tokyo, the Nikkei 225 advanced 1.03 percent to 49,507.21, as markets welcomed Governor Kazuo Ueda’s resolve to normalize monetary policy amid steady domestic inflation. Toyota rose 1.81 percent to 3,424 yen ($21.9), while Honda gained 0.91 percent despite lingering recall concerns.
Japanese chip-equipment makers tracked gains in U.S. peers, with Ibiden surging 4.44 percent and Tokyo Electron climbing 2.94 percent.
Taiwan’s TAIEX added 0.83 percent, led by a 2.55 percent jump in Foxconn, which ended at 221.5 Taiwan dollars ($7). TSMC was flat at 1,430 Taiwan dollars, while MediaTek slipped 0.7 percent to 1,410 Taiwan dollars amid worries over intensifying competition in legacy chips.
Mainland Chinese markets edged higher, with the Shanghai Composite up 0.36 percent and the Shenzhen Component rising 0.66 percent. Hong Kong’s Hang Seng Index was up 0.73 percent in late trade.
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