Seoul: South Korean stocks set a new high on Wednesday, inching close to the 5,200-point mark, fueled by gains in chipmakers and battery stocks. The Korean won rose sharply against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 85.96 points, or 1.69 percent, to 5,170.81.
According to Yonhap News Agency, the KOSPI has continued its bull run after topping the landmark 5,000 level on Tuesday. The index has surged almost 20 percent since Jan. 2. Trade volume was heavy at 578.1 shares worth 29.6 trillion won (US$20.8 billion). Losers outnumbered winners 440 to 429.
Retail investors were net buyers with 1.2 trillion won. Foreigners and institutional investors were net sellers, each offloading 135.1 billion won and 1.04 trillion won, respectively. "We are seeing persisting anticipation that the semiconductor cycle and demand for artificial intelligence (AI) data centers will continue," said Lee Kyoung-min, an analyst from Daishin Securities.
The country's two chip giants -- Samsung Electronics and SK hynix -- are scheduled to release their fourth-quarter earnings this week. Market watchers widely expect their earning results to beat market expectations, with local brokerages already upgrading their operating profit for the two chipmakers.
Further boosting investor confidence were remarks from United States President Donald Trump. On Tuesday, Trump said his administration will "work something out" with Seoul, signaling a conciliatory approach after threatening to raise "reciprocal" tariffs against South Korea to 25 percent.