Seoul shares up nearly 13 pct late Fri. morning on tech boost

Lead

South Korean stocks traded nearly 13 percent higher late Friday morning, recovering sharply from a three-session sell-off, as investors scooped up semiconductor shares following Microsoft's stronger-than-expected earnings report, according to Yonhap News Agency.

The benchmark Korea Composite Stock Price Index (KOSPI) expanded its gains, adding 717.3 points, or 12.82 percent, to trade at 6,310.86 as of 11:20 a.m., Yonhap reported. Earlier, at 9:15 a.m., the index had widened gains to 6,320.98, up 727.42 points, or 13 percent, after opening 1.15 percent higher at 5,657.79.

Coverage comparison

Three Yonhap News Agency reports tracked the market's move through Friday morning. The first, filed at the opening bell, noted the KOSPI added 64.23 points, or 1.15 percent, to 5,657.79 at the start of trading. A subsequent update reported that the index had widened gains to 6,320.98 as of 9:15 a.m., and a third report, filed late morning, placed the index at 6,310.86 as of 11:20 a.m.

All three reports attributed the rally to an overnight surge in U.S. tech stocks, driven by Microsoft's record 15 percent jump after it exceeded expectations for current-quarter sales and cloud growth in its second-quarter report, easing fears about massive spending on artificial intelligence (AI) infrastructure. The S&P 500 climbed 1.66 percent, the Nasdaq gained 2.78 percent, and the Dow Jones Industrial Average rose 1.19 percent, while the PHLX chip index surged 8.2 percent, Yonhap reported.

The reports noted that the surge followed a deep rout that saw the KOSPI fall nearly 40 percent this month alone. One report said the bourse operator activated a buy-side sidecar for the KOSPI at 9:06 a.m., suspending five-minute program trading for KOSPI-listed shares. A buy-side sidecar is triggered when the KOSPI 200 Futures index rises 5 percent or more for at least one minute.

Key claims

• The KOSPI traded at 6,310.86 as of 11:20 a.m., up 717.3 points or 12.82 percent, after opening 1.15 percent higher, Yonhap reported.
• The index had earlier reached 6,320.98 as of 9:15 a.m., up 727.42 points or 13 percent.
• The KOSPI fell nearly 40 percent in July alone.
• Microsoft jumped a record 15 percent after exceeding expectations in its second-quarter report, easing AI spending concerns.
• Semiconductor shares led the rally: Samsung Electronics surged 20.77 percent and SK hynix skyrocketed 22.69 percent, according to one Yonhap update; another report put Samsung at 18.24 percent and SK hynix at 21.86 percent.
• Hanmi Semiconductor shot up 23.21 percent and Samsung Electro-Mechanics flew up 29.81 percent, as reported in one update.
• Hyundai Motor jumped 6.98 percent, Naver gained 5.03 percent, HD Hyundai Heavy Industries rose 4.13 percent, and Hanwha Aerospace advanced 4.86 percent, according to the late-morning report.
• The Korean won was trading at 1,432.4 won against the U.S. dollar as of 11:20 a.m., down 14.4 won from the previous close; at 9:15 a.m. it was at 1,428.65 won, down 3.95 won.