South Korean shares start week higher as chipmakers jump; won hits near 2-year high
SEOUL: South Korean shares rose on Monday, driven by chipmakers on optimism around strong demand for AI investments, while the won hit a near two-year high amid expectations of continued dollar selling by major exporters.
South Korean shares opened higher on Monday, buoyed by optimism surrounding strong demand for AI investments among chipmakers. The Korea Composite Stock Price Index (KOSPI) climbed 196.57 points, or 2.94 percent, to reach 6,883.78, marking its highest intraday level since August 27. Earlier in the session, the benchmark index surged as much as 3.5 percent. Wall Street experienced a decline on Friday, but the Philadelphia Semiconductor Index stood out as a strong performer, increasing by 3.4 percent.
South Korean exports have so far this year surpassed the previous year's annual record, thanks to robust global demand for AI chips. Leading the index higher were Samsung Electronics, up 3.72 percent, and SK Hynix, gaining 6.01 percent. Other notable performers included LG Energy Solution, up 0.14 percent, Hyundai Motor, up 1.69 percent, and Kia Corp, up 0.32 percent.
Among the 909 traded issues, 438 shares advanced while 406 declined. Foreign investors were net buyers of shares valued at 789.2 billion won (US$590.45 million). The South Korean won strengthened to 1,335.8 per dollar on the onshore settlement platform, representing a 1.07 percent increase from its previous close of 1,350.1. This marked the highest level for the won since October 2024.
In money and debt markets, September futures on three-year treasury bonds rose by 0.07 point to 103.24. The yield on the most liquid three-year Korean treasury bond decreased by 0.8 basis point to 3.875 percent, while the benchmark 10-year yield fell by 2.7 basis points to 4.334 percent.
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