KOSPI reclaims 7,000 as chip gains offset oil price worries
The KOSPI index is displayed in the dealing room of Hana Bank in Seoul, Wednesday. The benchmark index closed at 7,051.64, up 1.4 percent from the previous session, reclaiming the 7,000 mark for the first time in 33 trading days. Yonhap
The benchmark KOSPI reclaimed the 7,000 mark Wednesday, with chip stocks leading the rally despite lingering concerns over escalating tensions in the Middle East and rising oil prices.
It marked the first close above 7,000 since July 23.
The KOSPI closed at 7,051.64, up 1.4 percent from the previous session. The index opened 18.35 points, or 0.26 percent, higher at 6,972.87 and extended its gains throughout the session.
Institutional investors were net buyers, purchasing 942 billion won ($705 million) worth of shares, while retail investors and foreign investors were net sellers, offloading 2.288 trillion won and 435.1 billion won, respectively.
Market bellwethers showed mixed performances, with SK hynix rising 3.51 percent to close at 1,856,000 won, while Samsung Electronics was unchanged at 269,500 won.
The KOSPI's advance came despite a weaker session on Wall Street overnight. The Dow, S&P 500 and Nasdaq all closed lower as renewed tensions in the Middle East and higher oil prices weighed on investor sentiment.
The Philadelphia Semiconductor Index bucked the trend, rising more than 1 percent as optimism over artificial intelligence (AI) demand continued to support chip stocks. OpenAI's latest AI model, GPT-6 Astra, has fueled expectations for stronger demand for memory chips and AI-related hardware.
The strength in U.S. semiconductor stocks overnight carried over into the Korean equities market, helping drive the KOSPI higher.
Attention is also turning to the U.S. consumer price index for August, due Friday (local time), as the inflation data could provide clues about the U.S. Federal Reserve's monetary policy.
Meanwhile, the secondary Kosdaq closed at 830.37, up 18.49 points, or 2.28 percent, from the previous session. The index opened 3.18 points, or 0.39 percent, higher at 815.06.
In the Seoul foreign exchange market, the won-dollar rate closed at 1,336.1 won, down 9.5 won from the previous session.