This photo, taken Thursday, shows the trading room of Hana Bank in Seoul as South Korean stocks spiked more than 8 percent as Samsung Electronics averted a strike. Photo by Yonhap
South Korean stocks spiked more than 8 percent Thursday on tech gains, after Samsung Electronics averted a strike and strong earnings from Nvidia, along with optimism over its robotics business outlook, boosted investor sentiment. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 606.64 points, or 8.42 percent, to close at 7,815.59. after rising as high as 7,819.23.
The index opened sharply higher, tracking overnight gains on Wall Street after crude oil prices fell amid reports that U.S. President Donald Trump said Washington was nearing a deal with Iran to end the war in the Middle East.
As stocks extended gains, program trading was suspended for five minutes at around 9:23 a.m., as KOSPI 200 futures stayed over 5 percent for more than 1 minute.
Major chipmakers and robotics-related shares surged after U.S. chip giant Nvidia posted stronger-than-expected earnings and its chief, Jensen Huang, highlighted physical artificial intelligence (AI) and robotics as key growth areas.
Trade volume was heavy at 616.36 million shares worth 42.74 trillion won (US$28.3 billion), with winners far outnumbering losers 667 to 220.
“The market posted a strong rebound as Samsung Electronics eased risks of a general strike,” Lee Kyung-min, an analyst at Daishin Securities, said.
“Nvidia’s earnings surprise also reinforced expectations for a continued AI-driven upcycle, boosting investor sentiment toward semiconductor stocks.”
Institutions bought a net 2.89 trillion won, leading the market rally.
Foreign investors sold a net 233.1 billion won worth of local shares, extending their 11-day selling spree, while individuals sold a net 2.65 trillion won.
Market bellwether Samsung Electronics surged 8.51 percent to close at 299,500 won after the world’s largest memory chipmaker reached a tentative wage deal with its labor union, averting a strike.
Rival chipmaker SK hynix gained 11.17 percent to 1.94 million won, and AI investment firm SK Square rose 14.58 percent to 1.8 million won.
Hyundai Mobis, Hyundai Motor Group’s auto parts affiliate, jumped 25.23 percent to 670,000 won, and LG Electronics soared 29.83 percent to 235,000 won on optimism over their robotics businesses.
Auto shares were also among the top performers.
Leading automaker Hyundai Motor climbed 12.5 percent to 666,000 won, while affiliate Kia added 12.38 percent to 167,900 won.
The Korean won was quoted at 1,506.1 won against the U.S. dollar at 3:30 p.m., up 0.7 won from the previous session.
Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.
