South Korean financial markets witnessed a significant rebound on Thursday, with benchmark indices climbing more than 2% as semiconductor stocks led a broad-based rally across the board.
Market Performance Highlights
The KOSPI index surged by 92.81 points, representing a substantial 2.36% gain, to reach 4,022.32 points during midday trading. This impressive recovery came after the market had experienced two consecutive sessions of losses, marking a strong turnaround in investor sentiment.
The trading session saw overwhelming bullish momentum, with 757 out of 922 traded stocks advancing, while only 133 declined. Foreign investors demonstrated strong confidence in the market, becoming net buyers of shares worth 271.5 billion Korean won.
Chipmakers Lead the Charge
The semiconductor sector emerged as the primary driver of the market rally, with industry giants posting impressive gains. Samsung Electronics jumped 3.63% while its competitor SK Hynix gained 3.74%. The positive momentum extended to other key sectors as well.
Battery manufacturer LG Energy Solution climbed 2.00%, while steel producer POSCO Holdings added 2.87% to its value. Automotive players also participated in the upward movement, with Hyundai Motor rising 0.38% and its sister company Kia Corp gaining 0.52%.
Global Catalysts Behind the Rally
The remarkable market performance was primarily fueled by Nvidia's strong earnings forecasts released on Wednesday. The American chipmaker's surprising growth acceleration after several quarters of slowing sales helped calm investor concerns about a potential bubble in artificial intelligence stocks.
Adding to the positive sentiment, U.S. officials indicated they might delay implementing long-promised semiconductor tariffs, according to a Reuters report. This development provided additional support to the semiconductor sector, which remains crucial to South Korea's export-oriented economy.
Nvidia CEO Jensen Huang played a significant role in boosting market confidence when he publicly dismissed concerns about an AI bubble, emphasizing the company's robust growth prospects during Wednesday's earnings announcement.
Currency and Bond Market Movements
The Korean won strengthened against the U.S. dollar, trading at 1,467.1 per dollar on the onshore settlement platform. This represented a 0.10% appreciation from its previous close of 1,468.5.
In the debt markets, December futures on three-year treasury bonds declined by 0.03 point to 105.88. The most liquid three-year Korean treasury bond yield increased by 1.0 basis point to 2.885%, while the benchmark 10-year yield remained unchanged at 3.285%.
The comprehensive market recovery demonstrates how global technology trends, particularly in artificial intelligence and semiconductors, continue to significantly influence South Korea's financial markets and export-driven economy.
