Seoul: South Korean stocks opened sharply higher on Wednesday, driven by a rebound in the semiconductor sector as investors keenly anticipate the upcoming earnings releases from major tech companies. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 402.31 points, or 5.96 percent, to reach 7,150.26 by 9:15 a.m.
According to Yonhap News Agency, the surge in Seoul stocks comes on the heels of positive performances in major U.S. stock indexes, where chipmakers, including Micron and Sandisk, saw significant gains of over 10 percent. These movements mirrored the upward trajectory of South Korean semiconductor giants like Samsung Electronics and SK hynix.
Market analyst Seo Sang-yong from Mirae Asset Securities highlighted the importance of forthcoming earnings reports and AI investment strategies from big tech firms in determining whether the current upward momentum can sustain investor interest. Notably, Alphabet Inc., Google's parent company, is slated to release its second-quarter earnings later on Wednesday (U.S. time).
In the Seoul market, key players showed positive performance with Samsung Electronics rising by 5.79 percent and SK hynix experiencing a notable spike of 9.15 percent. Other major companies also registered gains, including Hyundai Motor with an 8.27 percent rise, biotechnology firm Celltrion up by 2.51 percent, and portal operator Naver advancing 3.21 percent.
Meanwhile, the Korean won appreciated slightly, trading at 1,480.2 won against the U.S. dollar, marking an increase of 1.8 won from the previous day.