Global Market: South Korean shares rebound as chip stocks track Wall Street gains

South Korean shares rose more than 1% on Thursday, rebounding from a two-week low, as chipmakers tracked gains in their U.S. peers and helped lift the broader market, Reuters reported.

The benchmark KOSPI was up 90.60 points, or 1.38%, at 6,653.32 by 0129 GMT. The index had closed at its lowest level since August 19 in the previous session.

Read more: Global Market Today: Asian stocks advance as oil slips, yen in focus


According to Reuters, Wall Street stocks advanced on Wednesday, staging a partial recovery after a three-day losing streak as investors looked for opportunities in stocks and sectors that had been hit by recent risk-off moves.

The technology sector received an additional boost after Broadcom forecast strong artificial intelligence chip sales over the next two years. Reuters reported that the outlook provided fresh evidence that demand from Big Tech for AI infrastructure remains robust, even as investors continue to assess the returns from massive spending on the technology.

South Korean chipmakers benefited from the positive sentiment. Samsung Electronics gained 1%, while SK Hynix rose 0.87%, following gains in the Philadelphia Semiconductor Index in the previous session. U.S. chipmaker Nvidia climbed more than 3%.

Other major stocks also advanced. Battery maker LG Energy Solution jumped 5.47%, while Hyundai Motor and Kia gained 1.19% and 1.93%, respectively. Steelmaker POSCO Holdings added 4.39%.

Healthcare stocks were weaker, with Samsung BioLogics falling 0.73%.

Market breadth remained positive, with 568 of the 907 traded stocks advancing, while 304 declined.

Foreign investors, however, remained net sellers of South Korean equities, offloading shares worth 210.3 billion won ($155.10 million), Reuters data showed.

The South Korean won was quoted at 1,359.8 per dollar on the onshore settlement platform, down 0.04% from its previous close of 1,359.2.

In fixed-income markets, September futures on three-year Treasury bonds rose 0.12 point to 103.07. The most liquid three-year Korean Treasury bond yield fell 3.5 basis points to 3.905%, while the benchmark 10-year yield declined 2.5 basis points to 4.379%.