Seoul stocks open sharply higher on revived AI optimism, SK hynix earnings

Korean stocks experienced a significant surge on Wednesday, mirroring the overnight gains on Wall Street. Strong AI-driven semiconductor earnings played a pivotal role in boosting investor confidence before the Federal Reserve's interest rate decision. The Korea Composite Stock Price Index (KOSPI) soared 183.73 points, or 3.26 percent, to reach 5,822.07 within the first 15 minutes of trading. This marked a continuation of the rally that had begun the previous day, which had already surpassed a 3 percent increase.

In the interim, U.S. stocks continued their upward trajectory, primarily driven by a rally in AI-related technology shares. The tech-focused Nasdaq Composite index saw a 1.18 percent rise, while the Philadelphia Semiconductor Index climbed 3.6 percent, offering a positive outlook for Korean chip manufacturers.

Prior to the opening of the market, SK hynix, the world's second-largest memory chip maker, reported an astounding 631 percent increase in its third-quarter operating profit, reaching 83.33 trillion won ($62.78 billion). Sales also skyrocketed by 327.9 percent to 104.61 trillion won, primarily fueled by robust demand for AI memory chips.

In addition, the company announced an additional 60 trillion won in shareholder returns. Despite this positive momentum, investors maintained a cautious stance ahead of the Federal Reserve's decision on interest rates.