South Korea shares rise as chips extend rally

South Korean shares experienced a surge on Wednesday, with both Samsung Electronics and SK Hynix leading the gains due to persistent interest in the artificial intelligence sector. The South Korean won strengthened, while the benchmark bond yield declined. The KOSPI index climbed 100.16 points, or 1.44%, reaching 7,054.68 as of 01:30 GMT.

Samsung Electronics saw a 1.39% increase, while SK Hynix rose 3.46% following a 1.3% rise in the Philadelphia Semiconductor Index overnight. Other notable gains included LG Energy Solution up 0.29% and Hyundai Motor and Kia Corp up 0.26% and 0.48%, respectively. POSCO Holdings experienced a slight decline of 0.15%, while Samsung BioLogics rose marginally at 0.03%.

Out of the 909 traded issues, 405 shares advanced, and 448 declined. Foreign investors were net sellers, with a volume of 174.3 billion won ($130.2 million). The won appreciated to 1,339.1 per dollar onshore and 1,338.8 per dollar offshore, both representing a 0.28% and 0.1% increase, respectively. In the past year, the KOSPI has climbed 67.40%, and the won has strengthened 7.5% against the dollar.

Money and debt markets saw a 0.01 point increase in September futures on three-year treasury bonds, with the three-year yield dropping by 0.4 basis points to 3.899% and the 10-year yield falling by 1.1 basis points to 4.379%.