AI optimism drives KOSPI to August high as Samsung surges 6%
South Korea's KOSPI surged to its highest level since early August as foreign investors poured $636 million into the market, betting that sustained AI demand will continue to power semiconductor earnings.
The benchmark KOSPI jumped 3.46%, or 219.73 points, to reach 6,565.26 by early Wednesday trading. The rally pushed the index to its highest level since August 5, driven primarily by heavyweight chipmakers reacting to fresh optimism in the global artificial intelligence supply chain.
Semiconductor stocks anchored the advance, highlighting a growing divergence between broader risk appetite and specific technology demand. While Wall Street equities ended Tuesday lower amid rising concerns over the prospects of a Middle East stabilization deal, the Philadelphia Semiconductor Index managed a 0.9% gain. This isolated strength in U.S. chipmakers set a constructive tone for their South Korean counterparts.
Samsung Electronics led the board with a 6.16% gain, while rival SK Hynix added 3.86%. The strength in tech lifted other major names, with battery manufacturer LG Energy Solution climbing 2.54%. Automakers Hyundai Motor and Kia advanced 1.99% and 1.86% respectively, while steelmaker POSCO Holdings edged up 0.15%. Samsung Biologics bucked the trend, slipping 0.81%.
The concurrent gains in battery and automotive stocks suggest that foreign capital is not solely focused on the AI trade but is also pricing in a broader recovery in South Korean exports. LG Energy Solution’s rise points to sustained electric vehicle supply chain demand, complementing the semiconductor narrative and reinforcing the country's role as a core hardware supplier.
The broader market reflected this renewed confidence. Offshore investors purchased a net 899.6 billion won, equivalent to $635.65 million, of South Korean equities. Of the 910 stocks traded, 468 closed higher against 402 decliners, indicating broad-based participation that extended well beyond the large-cap tech giants.
South Korean government bonds were largely unmoved by the equity surge, suggesting the central bank's current rate trajectory remains intact. The most liquid three-year Treasury yield held steady at 3.802%, while the benchmark 10-year yield remained flat at 4.303%. September futures on three-year Treasuries dipped a marginal 0.02 point to 103.23.
