Seoul shares soar over 6 pct on revived AI optimism, SK hynix earnings

Seoul's stock market experienced a significant surge on Wednesday, as optimism surrounding artificial intelligence (AI) fueled investor confidence. The Korea Composite Stock Price Index, a key benchmark, jumped by 3.26 percent to reach 5,822.07 points, marking a 183.73-point increase within the first few minutes of trading. This strong opening came in the wake of Wall Street's overnight gains, further buoying investor sentiment.

The rally in South Korean stocks was driven by favorable earnings reports from AI-driven semiconductor companies. SK hynix, the world's second-largest memory chip manufacturer, reported an astonishing 631 percent surge in its third-quarter operating profit, reaching 83.33 trillion won (approximately US$62.78 billion). This remarkable increase was accompanied by a staggering 327.9 percent rise in sales, reaching 104.61 trillion won.

In response to the strong performance, the company announced an additional 60 trillion won in shareholder returns.

Investors continued to monitor the Federal Reserve's upcoming interest rate decision, which was scheduled to take place earlier in the day (Korean time). This decision would provide valuable insights into the future trajectory of U.S. interest rates, a factor that could impact global financial markets, including those in South Korea.

Among the notable movers in the market, Samsung Electronics, the country's largest technology company, saw its shares rise by 4.5 percent. SK hynix's parent firm, SK Square, also witnessed a significant gain, surging 4.59 percent. Additionally, Samsung Electro-Mechanics, an electronics component subsidiary of Samsung Electronics, experienced a 4.5 percent increase in its share price.

At 9:15 a.m., the Korean won was trading at 1,327.1 won per U.S. dollar, a slight decline of 0.1 won from the previous trading session's closing rate.