South Korean shares rise as tech stocks rebound on Wall Street

South Korean shares edged higher on Thursday, tracking gains in US technology stocks, while investors largely brushed aside uncertainty surrounding Nvidia CEO Jensen Huang's leadership. The Korean won strengthened against the dollar, while government bond yields declined, according to a report by Reuters.

The benchmark KOSPI rose 19.57 points, or 0.36%, to 5,394.93 as of 0145 GMT. The index has gained 28.02% so far this year.

Chipmakers led the gains, with Samsung Electronics rising 2.55% and SK Hynix advancing 0.47%. Foreign investors were net buyers of South Korean shares worth 128.6 billion won.


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However, gains were limited by losses in several heavyweight stocks. Battery maker LG Energy Solution slipped 0.45%, while Hyundai Motor and Kia Corp declined 1.47% and 1.27%, respectively. Steelmaker POSCO Holdings shed 0.18%, while drugmaker Samsung BioLogics fell 0.70%.

Of the 907 stocks traded, 259 advanced and 605 declined, indicating broader weakness despite the benchmark index's gains.

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South Korean technology stocks tracked an overnight recovery on Wall Street. The Nasdaq and S&P 500 each ended Wednesday more than 1% higher, while the S&P 500 technology sector climbed 2.7%. Technology shares rebounded after last week's selloff, which was driven by concerns over tighter artificial intelligence regulations and the sustainability of the sector's rally, as per the report.

Investor sentiment also remained sensitive to developments surrounding Nvidia. The chipmaker's board was meeting on Wednesday to decide whether to remove CEO Jensen Huang, a source familiar with the matter told Reuters. The leadership uncertainty comes amid reports involving two extramarital affairs concerning the company's longtime chief executive.

In currency markets, the won traded at 1,336.4 per dollar on the onshore settlement platform, strengthening 0.08% from its previous close of 1,337.5. The currency has appreciated 7.7% against the dollar so far this year.

South Korean government bonds also gained, with December futures on three-year Treasury bonds rising 0.10 point to 103.61.

The benchmark three-year Korean Treasury bond yield declined 3.3 basis points to 3.700%, while the 10-year yield fell 4.1 basis points to 3.911%.

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