KOSPI Surges Over 5% on Micron Earnings, Briefly Tops 9,000
South Korean stocks extended their gains late Thursday morning, with the benchmark KOSPI rising more than 5% and briefly surpassing the 9,000-point level, according to Yonhap News Agency. The surge was attributed to a semiconductor rally sparked by U.S. chip giant Micron Technology's stronger-than-expected quarterly earnings, which helped dispel lingering concerns about the sustainability of the artificial intelligence (AI) rally.
The Korea Composite Stock Price Index (KOSPI) closed at 8,930.30, up 459.28 points, or 5.42%, following a 3.26% gain the previous day. During the session, the index touched as high as 9,044.04, topping the 9,000-point threshold again. A buy-side sidecar was issued shortly after the market opened as the index pulled off a strong start.
Overnight, Wall Street closed mixed on concerns about overvaluation of AI-related shares. However, Micron, the world's No. 3 memory chipmaker, released its quarterly earnings after the market closed, sharply beating expectations. Micron is a major beneficiary of the AI infrastructure spending boom, along with Samsung Electronics and SK hynix, thanks to rising demand for memory chips and high-bandwidth memory (HBM).
In Seoul, blue chip shares led the early run. Market bellwether Samsung Electronics jumped 4.77%, and chip giant SK hynix soared 9.61%. Hanmi Semiconductor, a leading chip equipment maker, advanced 2.22%, and LG Electronics rose 0.24%.
Financial shares were also among the winners, with KB Financial Group gaining 1.91% and Samsung Life Insurance climbing 6.47%.
The Korean won weakened against the U.S. dollar, trading at 1,547.25 won at 11:20 a.m., down 5.25 won from the previous session.