SEOUL — South Korea’s benchmark KOSPI index shattered records today, surpassing the 3,500 mark for the first time in history. The surge, driven primarily by a robust rally in tech stocks, occurred just before a major national holiday break, signaling strong investor confidence despite lingering global concerns like the potential U.S. federal government shutdown.
Record-Breaking Session
The KOSPI opened sharply higher and continued its ascent, peaking above 3,530 before settling slightly. As of 9:27 a.m. local time, the index was trading at 3,524, an increase of nearly 68 points from the previous closing session. This move decisively broke both the prior all-time closing and intraday highs.
The market's upward momentum was overwhelmingly led by the semiconductor sector, with the country's two tech giants achieving significant milestones:
Samsung Electronics broke the psychological barrier to reach "90,000 won" ($90,000, or approximately $64.19 per share based on the day's exchange rate).
SK Hynix also surged, breaching the 400,000 won ($400,000, or approximately $285.20 per share) mark for the first time.
This powerful rally in chip stocks follows news of strategic partnerships with AI bellwether OpenAI, including collaboration on the 'Stargate' project, and an anticipated increase in demand for high-bandwidth memory (HBM) chips, further fueling the AI-driven semiconductor "super cycle" narrative.
Market Dynamics and Global Factors
The positive sentiment was heavily influenced by strong overnight performance on Wall Street, where the Dow Jones and S&P 500 both closed at new record highs, and the Nasdaq also posted gains. Investor optimism was spurred by the reduced fear of an immediate U.S. government shutdown, coupled with growing hopes for a potential exemption or rollback of certain tariffs, specifically on pharmaceuticals, which helped sustain a bullish mood.
Foreign investors played a crucial role in the KOSPI’s historic climb, turning into net buyers with over 500 billion won ($356.5 million) in net purchases on the main bourse. In contrast, domestic retail and institutional investors adopted a net selling stance, capitalizing on the high prices.
In the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,402 won per dollar before slightly dipping, reflecting the strong capital inflow.
Sectoral Performance
The tech-driven strength was broad across related sectors:
Strong Gains: Electric and Electronic stocks (dominated by semiconductors), Medical Precision, and Distribution sectors saw significant increases. Shares of other major companies like LG Energy Solution and Hyundai Motor also trended upward.
Weakness: Sectors that lagged included Shipbuilding, Finance, Food & Beverages, Metals, and Electric & Gas utilities, which were unable to maintain the market's overall upward trajectory.
The KOSPI's breakout above 3,500 just before a rare, long holiday period (Chuseok and associated public holidays) highlights the overwhelming focus on the robust outlook for technology and artificial intelligence, positioning South Korea's stock market at the forefront of the global tech rally.
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