(LEAD) Seoul shares spike 3.5 pct on eased woes over Strait of Hormuz, AI

Lead

SEOUL — Seoul shares soared more than 3.5 percent on Wednesday, as easing concerns over the profitability of artificial intelligence investments and hopes for an interim agreement between the United States and Iran over the Strait of Hormuz boosted investor sentiment, Yonhap reported.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 3.76 percent, or 239.31 points, to close at 6,598.26, after touching an intraday high of 6,674.66. The index had risen 1.62 percent Tuesday following a 5.12 percent plunge the previous day.

Trade volume was moderate at 335.16 million shares worth 25.21 trillion won (US$17.7 billion), with winners outnumbering losers 672 to 197.

Foreign investors were net buyers, purchasing 1.45 trillion won worth of stocks, while institutions and individuals sold a net 283.5 billion won and 1.18 trillion won, respectively.

The Korea Exchange (KRX) activated a buy-side sidecar for the KOSPI for five minutes at 9:25 a.m. after the index surged on gains in technology stocks.

Coverage comparison

The reports from Yonhap News, South Korea's leading wire service, focused on the positive market momentum driven by two main factors: easing worries about heavy investments in the AI sector and hopes for a reopening of the Strait of Hormuz shipping route. Both articles carried similar facts and framing, with one version adding a note on bond yields.

According to Yonhap, overnight U.S. stocks advanced as investors bet that a possible agreement to reopen the crucial shipping route could extend the recent decline in oil prices and ease inflationary pressures. The Dow Jones Industrial Average rose 1.71 percent to 54,085.88, while the tech-heavy Nasdaq Composite climbed 2.59 percent to 26,584.99.

In Seoul, tech stocks led the gains. Market bellwether Samsung Electronics rose 2.5 percent to 246,000 won, and its chipmaking rival SK hynix climbed 5.77 percent to 1,668,000 won. Top carmaker Hyundai Motor rose 3.06 percent to 404,500 won, and national flag carrier Korean Air gained 3.07 percent to 26,900 won.

Among decliners, leading refiner SK Innovation fell 1.89 percent to 109,200 won, and S-Oil declined 2.62 percent to 122,500 won.

Key claims

• Seoul shares rose more than 3.5 percent on Wednesday, with the KOSPI closing up 3.76 percent at 6,598.26.
• Trade volume was moderate at 335.16 million shares worth 25.21 trillion won.
• Foreigners bought a net 1.45 trillion won worth of stocks.
• The Dow Jones Industrial Average rose 1.71 percent to 54,085.88, and the Nasdaq Composite climbed 2.59 percent to 26,584.99.
• Bond prices closed higher, with the yield on three-year Treasurys falling 7.1 basis points to 3.669 percent.
• Analyst Kang Jin-hyeok of Shinhan Securities attributed the gains to Hormuz reopening hopes and robust U.S. tech earnings, which eased concerns over heavy AI investment.
• The Korea Exchange activated a buy-side sidecar for five minutes in the morning as the index surged.