South Korean shares surged on Thursday, with the benchmark Kospi hitting a three-week high as chipmakers tracked overnight gains in US artificial intelligence and semiconductor stocks, according to a Reuters report.
The Kospi rose 245.50 points, or 3.73%, to 6,824.54 as of 0138 GMT, its highest level since July 24. Semiconductor heavyweights led the gains, with SK Hynix and Samsung Electronics climbing more than 7% and 5%, respectively.
Sentiment towards the chip sector was also boosted by a report that Singapore state investor Temasek plans to invest in the two memory-chip manufacturers, the report stated.
US stocks provided a positive backdrop after the S&P 500 and Nasdaq ended higher on Wednesday, supported by upbeat quarterly results from CoreWeave and other AI infrastructure companies. Mild US inflation data also strengthened expectations that the Federal Reserve could keep interest rates unchanged in September.
Among other major South Korean stocks, battery maker LG Energy Solution advanced 1.95%, while Hyundai Motor and Kia gained 2.93% and 1.62%, respectively. POSCO Holdings slipped 0.08%, while Samsung Biologics rose 0.84%.
Of the 900 stocks traded, 397 advanced and 453 declined. Foreign investors were net buyers of South Korean shares worth 1.1 trillion won ($778.53 million).
The won strengthened 0.38% against the dollar to 1,413.1 on the onshore settlement platform, compared with its previous close of 1,418.5.
In South Korea's fixed-income market, September futures on three-year Treasury bonds rose 0.04 point to 103.35. The yield on the most liquid three-year Korean Treasury bond fell 0.2 basis point to 3.778%, while the benchmark 10-year yield edged up 0.2 basis point to 4.293%, as per the report.
