Global Market: South Korean shares jump over 4% as AI chip rally lifts Samsung, SK Hynix

South Korean shares surged more than 4% on Tuesday, led by strong gains in semiconductor stocks as renewed enthusiasm for artificial intelligence (AI) investments on Wall Street and stronger-than-expected economic growth boosted investor sentiment, according to a Reuters report.

The benchmark KOSPI rose 240.38 points, or 4.39%, to 5,709.85 as of 0153 GMT.

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US stocks closed higher on Monday, with the Philadelphia Semiconductor Index advancing more than 2%, as Anthropic's filing for an initial public offering (IPO) helped revive investor enthusiasm for AI-related stocks, the report stated.

South Korea's economy grew faster than expected in the third quarter, supported by a global AI chip boom that boosted exports and investment, advance estimates from the central bank showed.

Semiconductor heavyweights led the rally, with Samsung Electronics climbing 5.05% and SK Hynix gaining 7.14%.

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Other major stocks also traded higher. Battery maker LG Energy Solution rose 3.73%, while Hyundai Motor advanced 1.91% and Kia Corp gained 1.33%. Steelmaker POSCO Holdings added 3.15%.

However, Samsung BioLogics fell 4.89%, bucking the broader market rally.

Market breadth remained positive, with 695 stocks advancing and 187 declining among 910 traded issues. Foreign investors were net buyers of South Korean shares worth 597.3 billion won ($450.57 million), Reuters reported.

In the currency market, the South Korean won strengthened 0.08% to 1,325.0 per dollar on the onshore settlement platform, compared with its previous close of 1,326.0.

In fixed-income markets, December futures on three-year Treasury bonds were unchanged at 103.25. The yield on the most liquid three-year Korean Treasury bond rose 0.4 basis point to 3.792%, while the benchmark 10-year yield declined 0.7 basis point to 4.068%, according to Reuters.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)