South Korea’s Kospi index surged 4.32% to a record high of 7,822.24 on Monday, as a rally in semiconductor shares driven by artificial intelligence optimism overshadowed concerns about faltering U.S.-Iran peace talks.
"Investors' risk-on appetite was buoyed by optimism over continued growth of the semiconductor demand in line with the artificial intelligence (AI) infrastructure investment cycle and the recent tech gains on Wall Street," Lee Kyoung-min, an analyst at Daishin Securities, said.
The benchmark index gained 324.24 points to close at a fresh high, extending its winning streak to a fifth session. The rally was fueled by strong chip export data, with South Korea's semiconductor exports surging nearly 150 percent in the first 10 days of May to a record $8.54 billion. The Korean won closed at 1,472.4 per U.S. dollar, down 0.7 won from the previous session.
The surge in the Kospi brings its year-to-date gain to over 25%, with the index now targeting the 8,000-point milestone. The combined market capitalization of the Kospi and the secondary Kosdaq market surpassed 7,000 trillion won ($4.75 trillion) for the first time.
Chipmakers Lead the Charge
The market's advance was led by a powerful rally in large-cap semiconductor stocks. Market bellwether Samsung Electronics jumped 6.33% to a record 285,500 won, while its rival SK Hynix skyrocketed 11.51% to 1.88 million won, also a new high. The gains followed a rally in U.S. chipmakers on Friday, where Micron soared 15.49% and AMD jumped 11.44%.
Other tech and auto stocks also saw strong gains. AI investment firm SK Square rose 8.11%, while Hyundai Motor climbed 5.38% and its affiliate Kia gained 6.2%.
Mixed Market Breadth
Despite the strong headline gain, market breadth was negative, with 735 companies declining and only 147 advancing on the Kospi. This suggests that the rally is concentrated in a few large-cap names.
"The KOSPI is continuing to get a boost from gains in a limited number of semiconductor and other big-cap shares," Lee of Daishin Securities noted.
Several sectors saw profit-taking, with electrical shares losing ground after a recent rally. HD Hyundai Electric fell 2.92% and LS Electric dropped 2.88%. Battery maker LG Energy Solution also dipped 1.78%.
This article is for informational purposes only and does not constitute investment advice.
