After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) added 184.03 points, or 2.52 percent, to close at 7,475.94, according to data from United Press International. The index opened more than 3 percent higher and climbed as much as 5.7 percent during the session before paring gains, triggering a buy-side sidecar that temporarily halted program trading in KOSPI-listed shares for five minutes.
Semiconductor shares led the advance. Samsung Electronics rose 2.52 percent to 285,000 won. SK hynix edged down 0.27 percent to 2.18 million won after opening higher, as the company prepares to list its American depositary receipts on the tech-heavy Nasdaq. Artificial intelligence investment firm SK Square advanced 6.18 percent to 1.41 million won, while chip components maker Samsung Electro-Mechanics gained 6.1 percent to 1.58 million won.
Trade volume reached 449.53 million shares worth 31.16 trillion won (US$20.73 billion), with gainers outnumbering losers 799 to 92. Institutions purchased a net 1.13 trillion won worth of shares, while individuals sold a net 772.82 billion won and foreigners sold a net 322.56 billion won. Foreign investors turned net sellers after two consecutive sessions of net buying.
Investor sentiment toward the semiconductor sector improved after U.S. stocks closed higher overnight. The Dow Jones Industrial Average gained 0.27 percent, while the S&P 500 rose 0.81 percent. The tech-heavy Nasdaq Composite climbed 1.3 percent, supported by a strong rebound in chip shares and easing oil prices.
“Investor sentiment toward the semiconductor sector improved as Meta’s capital spending plans and Micron’s investment outlook helped ease concerns about the industry’s prospects,” said Lee Kyung-min, an analyst at Daeshin Securities. “Strong investor demand for SK hynix’s ADR offering also supported sentiment toward semiconductor stocks, adding upward momentum to the broader market.”
The South Korean won strengthened against the U.S. dollar, quoted at 1,501.4 won at 3:30 p.m., up 4.7 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1 basis point to 3.768 percent, and the return on the benchmark five-year government bonds lost 0.8 basis point to 4.008 percent.