South Korean shares ascend to a six-week peak, propelled by a rally in semiconductor stocks.
Story Snapshots:
- KOSPI index hits its highest since January 2, boosted by chipmaker stocks.
- SK Hynix records a significant share price jump; Samsung Electronics also climbs.
- Analysts attribute semiconductor stock purchases to AI industry growth.
- Despite a dip in exports, foreign investors continue their buying streak.
What factors led to the rise in South Korean shares, and how did semiconductor stocks perform? The KOSPI index in South Korea reached its highest point in six weeks, influenced by significant gains in heavyweight chipmakers amid a broader global rally, with analysts linking the surge in semiconductor stocks to advancements in the artificial intelligence sector.
Seoul’s financial markets witnessed an impressive climb, reaching their highest levels in the past six weeks, with investor sentiment buoyed by substantial gains in heavyweight chipmaker stocks. The benchmark KOSPI index closed up 1.12% at 2,649.64, marking a notable rally led by industry giants.
Semiconductor stocks, in particular, saw a marked rise. SK Hynix, a key player in the market, experienced a 5.04% increase in its shares—a notable leap not seen since November of the previous year. The larger counterpart, Samsung Electronics, also enjoyed a 1.48% ascent. Analyst Seo Sang-young from Mirae Asset Securities points to a surge in artificial intelligence-related advancements as the impetus behind the enthusiastic acquisition of semiconductor stocks by foreign investors.
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Meanwhile, despite the positively skewed trading session, South Korea’s exports for the first ten days of February showed a 14.6% decrease from the same period a year earlier, a dip attributed to calendar variations.
Yet, the broader share market remained on solid ground with advancements in 599 of the 936 traded issues. Foreign investors, undeterred by the export data, continued their streak of net buying for the eighth consecutive session, injecting 944.9 billion won ($711.40 million) into the main board.
The won concluded the onshore trade slightly stronger, while bond markets reflected a decline in futures on three-year treasury bonds and a rise in yields for both three-year and benchmark ten-year treasury bonds.
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