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SEOUL — South Korean stocks opened sharply higher Wednesday, surging more than 3.5 percent as easing concerns about the profitability of artificial intelligence (AI) investments and hopes for a possible interim agreement between the United States and Iran over the Strait of Hormuz boosted investor sentiment, Yonhap News Agency reported.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 3.76 percent, or 239.31 points, to close at 6,598.26, according to one Yonhap report. Earlier in the session, the index opened 3.85 percent higher at 6,603.48. The gains mark a rebound following a volatile week that saw the index plunge 5.12 percent on Monday, before rising 1.62 percent on Tuesday.

The rally was broad-based, driven by technology stocks. Market bellwether Samsung Electronics jumped 4.38 percent, while its chipmaking rival SK hynix surged 7.29 percent in early trading. Among other gainers, Hyundai Motor rose 3.82 percent and HD Korea Shipbuilding & Offshore Engineering climbed 2.94 percent.

The surge triggered a buy-side sidecar on the KOSPI at 9:25 a.m. for five minutes, a mechanism that temporarily suspends trading in index futures to curb volatility. The sidecar was activated after the index surged on gains in technology stocks.

Coverage Comparison

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, Yonhap reported. Strong earnings reports from key firms, such as enterprise software firm Palantir Technologies, also helped ease concerns over massive investment into the AI sector by major tech firms.

By late Wednesday morning, the KOSPI was trading up 249.33 points, or 3.92 percent, to 6,608.28 as of 11:20 a.m., Yonhap reported. Institutional and foreign investors were net buyers, purchasing a combined 798.5 billion won (US$560 million) worth of shares, while retail investors sold a net 795.5 billion won.

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.

Key Claims

  • KOSPI closed up 3.76 percent, or 239.31 points, at 6,598.26.
  • The index opened 3.85 percent higher and surged past 6,600 points in early trading.
  • Samsung Electronics jumped 4.38 percent, and SK hynix surged 7.29 percent in morning trading.
  • The Korea Exchange activated a buy-side sidecar for the KOSPI for five minutes at 9:25 a.m. after the index surged.
  • The Korean won was trading at 1,429.20 won against the U.S. dollar as of 9:15 a.m., down 0.2 won from the close of stock trading the day before.
Separately, in Friday's trading session, Seoul shares opened higher, with the KOSPI trading up 79.21 points, or 1.26 percent, at 6,375.59, despite renewed geopolitical tensions in the Middle East. Samsung Electronics rose 2.49 percent and SK hynix climbed 0.6 percent in that session.