KOSPI Surges Over 4% as Asian Stocks Trade Mixed

Asian stocks traded mixed on Thursday, but maintained a positive bias as South Korea's benchmark KOSPI led gains. The index surged over 4% to top 6,950, marking its third consecutive day of growth.

The rally was driven by robust economic fundamentals, with South Korea's exports reaching a record $709.4 billion year-to-date, surpassing its 2025 total. Semiconductor exports from January to August jumped 169.6%, contributing significantly to the growth.

In Japan, the Nikkei 225 rose 1.85% above 66,200, while the Topix gained 0.48% past 4,100. However, sentiment remains cautious due to expectations of a potential September rate hike by the Bank of Japan to combat sticky inflation and currency weakness.

Chinese markets presented a mixed picture, with the Shanghai Composite dipping 0.24% toward 3,920, while the Shenzhen Component jumped over 2% above 13,800. The country announced a CNY 300 billion ($45 billion) injection into its largest financial institutions to bolster credit growth and shore up balance sheets.

The strong US jobs data reinforced expectations of a Federal Reserve rate hike this month. August Nonfarm Payrolls rose by 162,000, significantly outperforming the 56,000 forecast. The unemployment rate held steady at 4.1%, and annual wage growth slowed less than anticipated to 3.1%.