Seoul shares rally over 8 pct on tech gains after Samsung wage deal, Nvidia outlook; won rises
South Korea’s KOSPI index surged 8.42% to 7,815.59 after Samsung Electronics avoided a strike and Nvidia’s strong earnings boosted tech and robotics sectors, while the Korean won rose against the U.S. dollar. Heavy trading volume saw institutions buy 2.89 trillion won in shares, though foreign investors continued an 11-day selling streak.
South Korea’s benchmark Korea Composite Stock Price Index (KOSPI) closed 8.42% higher at 7,815.59 on Thursday, marking its largest single-day gain in years after Samsung Electronics averted a strike and Nvidia reported stronger-than-expected earnings. The rally was fueled by optimism in artificial intelligence and robotics, with KOSPI briefly triggering a 5-minute trading halt due to extreme volatility. Major tech and semiconductor stocks led gains, including Samsung Electronics, which rose 8.51% to 299,500 won after reaching a tentative wage deal with its labor union. Rival SK hynix climbed 11.17% to 1.94 million won, while AI investment firm SK Square surged 14.58% to 1.8 million won. Hyundai Mobis jumped 25.23% to 670,000 won, and LG Electronics soared 29.83% to 235,000 won, reflecting strong investor sentiment toward robotics and automotive sectors. Nvidia’s earnings report, highlighting growth in physical AI and robotics, reinforced expectations for continued semiconductor demand. Analyst Lee Kyung-min from Daishin Securities noted that Samsung’s strike risk easing and Nvidia’s performance bolstered confidence in AI-driven stock trends. Trading volume reached 616.36 million shares worth 42.74 trillion won ($28.3 billion), with 667 winners against 220 losers. Institutional investors led the rally with net purchases of 2.89 trillion won, while foreign investors extended their 11-day selling streak, offloading 233.1 billion won. The Korean won strengthened to 1,506.1 against the U.S. dollar, up 0.7 won from the previous session, reflecting improved market sentiment. Automakers Hyundai Motor and Kia also performed strongly, gaining 12.5% and 12.38% respectively, as optimism in robotics and AI-driven industries spread across sectors. The market rebound followed overnight gains in Wall Street, though crude oil price declines and reports of a potential U.S.-Iran deal in the Middle East contributed to broader investor optimism.
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