Korean stocks surge over 4% as risk appetite returns
Summary
Korean stocks surged in Seoul Tuesday, closing at 5,239.13, up 4.39 percent, as easing Middle East tensions and a rally in U.S. semiconductor shares revived risk appetite. Foreign investors returned as net buyers after eight trading sessions, while semiconductor and power equipment shares advanced. The Kosdaq rose 4.48 percent to 667.61, and the won strengthened to 1,337.5 per dollar.
Key Facts
- The KOSPI opened 4.55 percent higher, triggering a buy-side sidecar at 9:06 a.m., before giving up some early gains.
- Foreign investors bought a net 353.2 billion won of shares, and institutional investors bought a net 498 billion won; retail investors sold a net 1.34 trillion won.
- SK hynix gained 6.69 percent to 1,212,000 won, while Samsung Electronics rose 4.74 percent to 198,900 won.
- Hyosung Heavy Industries, HD Hyundai Electric and LS Electric advanced 12.72 percent, 10.67 percent and 8.33 percent, respectively.
- The won closed at 1,337.5 per dollar, strengthening 9.6 won from the previous session.
KOSPI and the share prices of SK hynix and Samsung Electronics are displayed in the dealing room of Hana Bank in Seoul, Tuesday. The benchmark index closed at 5,239.13, up 4.39 percent from the previous session. SK hynix and Samsung Electronics surged 6.69 percent and 4.74 percent, respectively, to close at 1,212,000 won and 198,900 won. Yonhap
Korean stocks surged more than 4 percent, Tuesday, as easing Middle East tensions and an overnight rally in U.S. semiconductor shares revived risk appetite.
The benchmark closed at 5,239.13, up 4.39 percent. It opened 4.55 percent higher, triggering a buy-side sidecar at 9:06 a.m, but pared some of the early gains.
Foreign investors turned net buyers for the first time in eight trading sessions, purchasing a net 353.2 billion won ($264.3 million) of shares. Institutional investors also bought a net 498 billion won, while retail investors sold a net 1.34 trillion won.
Semiconductor stocks helped lift the index. SK hynix surged 6.69 percent to close at 1,212,000 won, while Samsung Electronics climbed 4.74 percent to 198,900 won.
Power equipment shares also rallied amid improving sentiment toward the artificial intelligence (AI) value chain, with Hyosung Heavy Industries, HD Hyundai Electric and LS Electric gaining 12.72 percent, 10.67 percent and 8.33 percent, respectively.
U.S. President Donald Trump signaled that military action could be avoided if negotiations made progress, following reports of talks over the release of frozen Iranian funds. West Texas Intermediate crude futures fell below $87 a barrel.
Despite fallout from a scandal involving Nvidia CEO Jensen Huang, the Philadelphia Semiconductor Index surged 6.9 percent on bargain hunting. Sentiment was further buoyed by the U.S. Senate's decision to advance the proposed Bipartisan American Affordability and Jobs Act, which aims to protect existing data center operations and shortens permitting timelines.
"Investors sentiment is highly vulnerable to short-term stock price fluctuations," said Han Ji-young, an analyst at Kiwoom Securities. "But concerns over the AI industry and skepticism about semiconductor earnings have already been largely priced into stocks. Opportunities for a turnaround in market sentiment could continue to emerge."
The tech-heavy Kosdaq rose 4.48 percent to close at 667.61, with a buy-side sidecar also triggered at 9:10 a.m.
The won strengthened against the dollar, with the exchange rate closing at 1,337.5 won per dollar, down 9.6 won from the previous session.
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