KOSPI rallies over 2% as investors look past US tech rout
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The KOSPI and Kosdaq are displayed on the board in the dealing room of Hana Bank in Seoul, Monday. The benchmark KOSPI closed at 5,859.08, up 2.24 percent from the previous session, while Kosdaq closed at 734.36, up 1.38 percent. Yonhap
KOSPI rose more than 2 percent Monday, as institutional buying helped stocks rebound from early losses, shrugging off lingering concerns over the profitability of artificial intelligence (AI) investments.
The benchmark closed at 5,859.08, up 2.24 percent. It opened 1.62 percent lower before reversing course as institutional investors stepped up purchases.
Institutional investors bought a net 1.36 trillion won ($1.01 billion) of shares, while foreign and retail investors net sold 43.09 billion won and 1.41 trillion won, respectively.
SK hynix gained 3.81 percent to close at 1,472,000 won, while Samsung Electronics climbed 1.78 percent to 229,000 won. SK Square, which announced plans to return at least 4.3 trillion won to shareholders out of more than 6.2 trillion won expected from SK hynix’s cash dividends, also gained 5.91 percent to close at 950,000 won.
The rebound came despite a rout in U.S. semiconductor shares on Friday (local time), when Intel plunged 28 percent and the Philadelphia Semiconductor Index tumbled 7.2 percent.
Lee Kyoung-min, an analyst at Daishin Securities, said much of the bad news had already been priced into Korean stocks.
Investors are also reassessing the implications of Intel’s disappointing earnings, according to Lee. The U.S. chipmaker issued quarterly revenue guidance below analysts’ estimates, citing weakening PC demand as surging memory prices drive up costs. That has increasingly been interpreted as a sign of pressure on PC manufacturers’ margins rather than a collapse in demand for memory chips.
Korea’s latest export data offered further support. Shipments totaled $115.3 billion in October, according to figures released Sunday, while semiconductor exports jumped 259.4 percent from a year earlier to $56.4 billion.
Signs of easing geopolitical tensions in the Middle East also buoyed sentiment, amid progress in diplomatic talks involving Iran and remarks from the U.S. administration.
Still, analysts warned that volatility may persist as investors grapple with questions over returns on AI spending by major U.S. technology companies, alongside this week’s U.S. midterm elections and employment report.
The tech-heavy Kosdaq rose 1.38 percent to close at 734.36.
The won-dollar exchange rate closed at 1,343.8 won per dollar, up 9.5 won from the previous session.
