Seoul: South Korean stocks soared by more than 5 percent Thursday, briefly topping the 9,000-point level again, driven by a tech rally ignited by U.S. chip giant Micron Technology's expectation-beating earnings report. The Korean won fell against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) gained 459.28 points, or 5.42 percent, to close at 8,930.30, following a 3.26 percent gain the previous day. The index briefly topped the 9,000-point threshold, reaching as high as 9,044.04, after finishing at an all-time high of 9,114.55 on Monday. The KOSPI remained in the 8,000-point range after a significant drop of 9.99 percent on Tuesday.
The index pulled off a strong start, with a buy-side sidecar issued shortly after the market opened. This was in response to Micron, the world's No. 3 memory chipmaker, releasing a stronger-than-expected quarterly earnings report, which alleviated concerns about the sustainability of an artificial intelligence (AI) rally. Micron is a major beneficiary of the AI infrastructure spending boom, along with Samsung Electronics and SK hynix, due to rising demand for memory chips and high-bandwidth memory (HBM).
Trade volume was heavy at 449.3 million shares worth 50.4 trillion won (US$32.7 billion), with losers outnumbering winners 588 to 289. Institutions purchased a net 3.3 trillion won worth of stocks, while foreigners and individuals sold off a net 819.7 billion won and 2.5 trillion won, respectively.
"Micron's strong financial report pushed up semiconductor shares here," said Kim Seok-hwan, an analyst at Mirae Asset Securities. "Airline shares also rose as the Strait of Hormuz seemed to reopen and global oil prices dropped."
Samsung Electronics, the world's largest memory chipmaker, jumped 5.29 percent to 358,500 won, and No. 2 SK hynix surged 13.06 percent to 2.9 million won. SK Square, the parent of SK hynix, advanced 5.56 percent to 1.9 million won, and Samsung C and T, which holds a stake in Samsung Electronics, soared 7.79 percent to 519,000 won. Flag air carrier Korean Air vaulted 6.4 percent to 29,100 won, and Asiana Airlines mounted 6.2 percent to 7,710 won.
Brokerages were also strong, with Samsung Securities rising 3.07 percent to 110,800 won, and Kiwoom Securities gaining 7.48 percent to 337,500 won. The Korean won was quoted at 1,542.7 won per U.S. dollar as of 3:30 p.m., down 0.9 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.5 basis points to 3.757 percent, and the return on the benchmark five-year government bonds declined 2.2 basis points to 3.992 percent.