SK Hynix, Samsung Stock Explode on AI Boom: South Korean Market Hits Three-Week High
Semiconductor Giants Drive Rally as Kospi Reaches New Peak
South Korean equities surged on Thursday, driven by strong performance in the semiconductor sector. The benchmark Kospi rose 245.50 points, registering a 3.73% gain to close at 6,824.54 as of 0138 GMT. This upward momentum marks the index's highest level since July 24.Chipmaking heavyweights led this impressive rally. Both SK Hynix and Samsung Electronics saw significant gains, with their stock prices climbing more than 7% and 5%, respectively. The positive sentiment surrounding the chip sector was further reinforced by reports indicating that Singapore state investor Temasek plans to invest in both memory-chip manufacturers.
US Market Tailwinds Boost Tech Stocks
The rally in Seoul benefited from a strong backdrop provided by U.S. markets. The S&P 500 and Nasdaq finished higher on Wednesday, bolstered by encouraging quarterly results from AI infrastructure firms like CoreWeave. Additionally, mild inflation data strengthened expectations that the Federal Reserve might maintain stable interest rates through September.This combination of local and global tailwinds fueled investor confidence. Foreign investors showed significant commitment to South Korean stocks, accumulating shares worth 1.1 trillion won ($778.53 million).
Beyond Big Chips: Corporate Stocks Respond Positively
While the semiconductor sector dominated the gains, other major South Korean companies also posted positive results. Battery maker LG Energy Solution advanced 1.95%. Hyundai Motor and Kia also saw appreciation, rising by 2.93% and 1.62%, respectively. Samsung Biologics climbed 0.84%.Conversely, POSCO Holdings marginally slipped 0.08%. Looking at the overall market activity across the 900 traded stocks, 397 advanced while 453 declined.
Currency and Fixed-Income Market Dynamics
The Korean won strengthened slightly against the dollar on the onshore settlement platform. The currency closed at 1,413.1, up 0.38% from its previous closing rate of 1,418.5.In the fixed-income market, September futures for three-year Treasury bonds rose 0.04 point to 103.35. Meanwhile, yields in the Korean bond market saw subtle shifts. The yield on the most liquid three-year Korean Treasury bond fell by 0.2 basis points to 3.778%. Conversely, the benchmark 10-year yield edged up 0.2 basis point to 4.293%.
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