KOSPI climbs 3.7% on chip rally, foreign buying

The South Korean KOSPI index experienced a strong 3.68 percent surge on Wednesday, driven by significant inflows of capital from foreign and institutional investors purchasing large-cap semiconductor stocks. This rally was fueled by positive earnings reports from major U.S. tech companies and expectations for attractive shareholder returns.

The KOSPI index closed the session at 6,579.04, marking a notable 3.68 percent increase from the previous day's trading. The benchmark index opened the trading day 1.42 percent higher, with trading activity accelerating further by 11:57 a.m., marking the 23rd such activation this year. Foreign investors added a net 2.83 trillion won ($1.9 billion) to the market, while institutional investors contributed 528.4 billion won in share purchases.

In contrast, retail investors sold shares netting a loss of 3.19 trillion won, taking profits from their positions. The positive sentiment surrounding large-cap semiconductor stocks was bolstered by strong earnings announcements from prominent U.S. tech firms and optimism about upcoming shareholder return initiatives. Notably, SK hynix experienced a 5.54 percent gain, closing the day at 1,504,000 won, while Samsung Electronics saw a 6.68 percent increase, finishing at 255,500 won.

CoreWeave reported impressive second-quarter earnings, with revenue reaching $2.58 billion, representing a staggering 112 percent year-over-year growth, and announced plans to increase dividends.