Global Market: South Korean shares surge as Samsung, SK Hynix rally on AI optimism

South Korean shares climbed on Wednesday, led by gains in Samsung Electronics and SK Hynix as investor appetite for artificial intelligence-related stocks remained strong. The South Korean won also strengthened against the US dollar, while government bond yields edged lower.

The benchmark KOSPI rose 100.16 points, or 1.44%, to 7,054.68 as of 01:30 GMT. The index has gained 67.40% so far this year.

Chipmaker Samsung Electronics advanced 1.39%, while SK Hynix jumped 3.46%, tracking gains in US semiconductor stocks. The Philadelphia Semiconductor Index rose 1.3% in overnight trading, supporting sentiment toward South Korean chipmakers.


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Other major stocks also traded higher. LG Energy Solution gained 0.29%, while Hyundai Motor and Kia rose 0.26% and 0.48%, respectively. POSCO Holdings slipped 0.15%, while Samsung BioLogics edged up 0.03%.

Of the 909 stocks traded, 405 advanced and 448 declined. Foreign investors were net sellers of South Korean shares worth 174.3 billion won ($130.2 million).

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Won strengthens

The won strengthened 0.28% to 1,339.1 per dollar on the onshore settlement platform, compared with its previous close of 1,342.8. In offshore trading, the currency was quoted at 1,338.8 per dollar, up 0.1%, while its one-month non-deliverable forward contract was quoted at 1,338.4.

The currency has appreciated 7.5% against the dollar so far this year.

According to Reuters, South Korean President Lee Jae Myung and French President Emmanuel Macron discussed security cooperation and freedom of navigation in the Strait of Hormuz during a summit in Paris on Tuesday, as the conflict in the Middle East intensified.

Korean bond yields edge lower

In the debt market, September futures on three-year Treasury bonds gained 0.01 point to 103.12.

The yield on the most liquid three-year Korean Treasury bond fell 0.4 basis points to 3.899%, while the benchmark 10-year yield declined 1.1 basis points to 4.379%.

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