Key Takeaways
South Korean stocks shattered a new record on Monday as an artificial intelligence-led rally in semiconductor shares pushed the benchmark index past the 6,600 mark for the first time. The KOSPI closed up 139.4 points, or 2.15 percent, to 6,615.03.
"We are seeing anticipation over companies related to AI data centers, particularly those in the AI value chain, such as semiconductor and power equipment companies," Lee Kyoung-min, an analyst at Daishin Securities, said. Lee added that geopolitical uncertainties from the Middle East, which had been weighing on the market, appear to be easing.
The rally was led by market bellwether Samsung Electronics, which added 2.28 percent to 224,500 won, and chipmaking rival SK hynix, which advanced 5.73 percent to 1,292,000 won. The gains followed a strong first-quarter earnings report from Intel that beat analyst expectations. Power equipment providers also surged, with LS Electric jumping 12 percent. In contrast, battery shares including LG Energy Solution lost ground on profit-taking.
The record close comes as investors await first-quarter earnings from five of the seven largest U.S. technology companies this week, including Microsoft and Apple, for further signals on the AI-driven tech boom. The move was backed by heavy trading volume of 835.6 million shares worth 33 trillion won (US$22.4 billion), with foreign and institutional investors purchasing a combined net 1.99 trillion won of equities.
The broad-based gains pushed South Korea's total stock market capitalization to a record 6,031.97 trillion won (US$4.1 trillion) during Monday's session, according to data from the Korea Exchange. The secondary KOSDAQ market also gained more than one percent after breaking the 1,200 level last week for the first time in about 25 years.
The bullish sentiment was reflected in currency and bond markets. The Korean won strengthened to 1,472.5 against the U.S. dollar, up 12 won from the previous session. Bond prices rose, with the yield on three-year Treasurys falling 0.4 basis points to 3.492 percent. The iShares MSCI South Korea ETF (EWY), a popular vehicle for foreign investors, also touched a new 52-week high in response to the rally.
This article is for informational purposes only and does not constitute investment advice.
