South Korean shares rally 6% as SK Hynix beats forecasts

South Korean shares surged 6% on Wednesday, with chipmakers leading the rally after SK Hynix reported better-than-expected third-quarter profits and forecast continued strong demand. The KOSPI index climbed 337.64 points, or 5.99%, to 5,975.98 as of 0140 GMT, marking the largest daily percentage increase since July 31.

The tech rally driven by AI fueled a higher close for US stocks on Tuesday as the third-quarter reporting season progressed. The Federal Reserve convened for its final meeting before year-end. SK Hynix's shares rose 8.20% following the announcement of shareholder returns of approximately $75 billion and a more than sevenfold increase in quarterly profit, attributable to the surge in memory chip prices fueled by AI infrastructure.

Other notable index constituents included Samsung Electronics, which gained 8.90%, while LG Energy Solution climbed 1.70%, and Hyundai Motor and Kia Corp, up 3.27% and 1.50%, respectively. POSCO Holdings increased 2.72%, while Samsung BioLogics fell 0.36%.

Of the 913 traded issues, 620 shares advanced, with 257 declining. Foreign investors were net buyers of shares worth $444.24 million. The South Korean won closed at 1,335.7 per dollar, a 0.64% decrease from the previous close of 1,327.2. In money and debt markets, December futures on three-year treasury bonds fell 0.05 point to 103.29, and the three-year yield decreased by 2.2 basis points to 3.776%, while the 10-year yield rose by 2.8 basis points to 4.070%.