KOSPI Tops 7,100 on Nasdaq Record; Chipmakers Lead Gains
Korean equities surged past 7,100 as US AI stocks hit records, with Samsung and SK hynix driving the rally.
Key points
- KOSPI rose 2.23% to 7,163.93, crossing the 7,100 level amid a 2.3% surge in the Nasdaq Composite.
- Samsung Electronics and SK hynix gained 2% and 3% respectively, leading the main board rally driven by US AI stocks.
- WTI crude oil prices fell 4.5% to $95.78, reducing energy costs and supporting the broader tech sector performance.
The KOSPI index climbed 2.23% to 7,163.93 on Tuesday, breaking through the 7,100 threshold for the first time in recent trading. This sharp advance was driven by overnight record highs in US technology stocks, particularly those tied to artificial intelligence. The broad rally lifted major South Korean conglomerates, with nine of the ten largest main-board companies posting gains.
Semiconductor manufacturers led the index movement, with Samsung Electronics rising approximately 2% and SK hynix gaining 3%. Other significant contributors included LG Energy Solution, Hyundai Motor, and Samsung Biologics. According to data reported by chosun.com, these gains offset the sole decline among the top tier, which was KB Financial Group. The KOSDAQ index also finished higher, up 0.98% at 844.44, supported by broad strength in its largest constituents.
US Tech Rally Drives Local Gains
The impetus for the Korean market surge came from the Nasdaq Composite, which jumped 2.3% to close at a record 27,122.09. The rally was fueled by strong performance in AI-related equities, with Meta shares spiking over 11% following positive reception of its new AI agent. AMD, Intel, and Qualcomm also posted double-digit or near-double-digit gains, reinforcing the narrative of sustained demand for high-performance computing hardware.
Global macro factors further aided the tech sector's performance. West Texas Intermediate crude oil prices settled down 4.5% at $95.78 per barrel, while Brent crude fell 3.4% to $100.34. This drop in energy costs reduced input pressure for industrial and technology firms, contributing to the broader risk-on sentiment that lifted the S&P 500 by 1.5% and the Dow Jones by 0.7%.
Investor Flows Favor Corporate Strength
Despite the index gains, foreign and institutional investors were net sellers on the main board, offloading 136.8 billion won and 37.7 billion won, respectively. Individual investors were also net sellers of 208.6 billion won on the primary exchange. However, the sentiment reversed on the KOSDAQ, where individuals acted as the sole net buyers, accumulating 66.7 billion won while foreigners and institutions sold 44.3 billion won and 22.1 billion won.
The divergence in trading patterns highlights a shift in retail participation within the growth segment. Top KOSDAQ names such as Alteogen, EcoPro, and Rainbow Robotics all advanced, indicating that smaller-cap technology and industrial firms benefited from the same AI-driven momentum affecting the larger semiconductor players. This broad-based participation suggests that the rally is not limited to a few blue-chip names but extends across the Korean equity landscape.
