South Korean shares rise as chipmakers jump
SEOUL: Round-up of South Korean financial markets : South Korean shares rose on Wednesday, extending gains for a third straight session, as chipmakers jumped on AI optimism. The benchmark KOSPI was up 219.73 points, or 3.46%, at 6,565.26, as of 0155 GMT, hitting its highest level since August 5. Wall Street ended lower on Tuesday, with Amazon and Alphabet dipping, as investors became more…
South Korean shares surged on Wednesday, marking the third consecutive day of gains, driven by optimism surrounding artificial intelligence and chipmakers. The KOSPI index climbed 219.73 points, or 3.46%, to reach 6,565.26, its highest level since August 5. This positive movement came after Wall Street's decline on Tuesday, with major tech companies Amazon and Alphabet experiencing a downturn amid uncertainty about Middle East stability. However, the Philadelphia Semiconductor Index showed a 0.9% increase.
Analysts attribute the surge to strong demand for AI infrastructure, particularly from semiconductor firms. Han Ji-young, an analyst at Kiwoom Securities, noted that inflows into semiconductor and AI-related stocks are expected to improve. Among the major indices, Samsung Electronics and SK Hynix, both major chipmakers, saw significant gains of 6.16% and 3.86%, respectively. Battery manufacturer LG Energy Solution also rose 2.54%.
Other notable performers included Hyundai Motor and Kia Corp, both automakers, which both rose by 1.99% and 1.86%, respectively. POSCO Holdings, a steelmaker, increased by 0.15%, while Samsung BioLogics, a drugmaker, saw a slight decline of 0.81%. Out of the 910 traded issues, 468 shares advanced while 402 declined. Foreign investors were net buyers, investing 899.6 billion won ($635.65 million) in South Korean shares.
On the monetary front, the won was trading at 1,414.6 per dollar on the offshore settlement platform, showing a slight decline of 0.11% from the previous close. In money and debt markets, futures on three-year Korean treasury bonds experienced a minor drop of 0.02 point to 103.23, with the three-year bond yield remaining flat at 3.802%. The benchmark 10-year yield remained steady at 4.303%.
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