Seoul: South Korean stocks traded higher late Friday morning, driven by sharp gains in big-cap tech shares, including Samsung Electronics and SK hynix. The benchmark Korea Composite Stock Price Index (KOSPI) added 30.23 points, or 0.74 percent, to 4,138.85 as of 11:20 a.m.
According to Yonhap News Agency, major U.S. indexes ended higher on Wednesday, with the Dow Jones Industrial Average adding 0.6 percent and the tech-heavy Nasdaq composite rising 0.22 percent. The U.S. Volatility Index, also known as the fear index, fell to 13.4 points, marking the lowest level this year. Data also indicated a drop in unemployment benefit applications, which boosted investor confidence in the U.S. economy.
In Seoul, tech giant Samsung Electronics soared 4.77 percent to an all-time high of 116,400 won (US$80.74) following reports that it has independently developed a graphic processing unit for smartphones. Its chipmaking rival SK hynix also saw a jump of 2.3 percent. Additionally, artificial intelligence investment firm SK Square surged 4.83 percent after an investment warning was lifted for the company.
Construction and trading firm Samsung C and T saw a rise of 1.04 percent. However, leading battery maker LG Energy Solution dropped 1.79 percent, and power plant manufacturer Doosan Enerbility fell 1.58 percent. The shipbuilding and financial sectors also experienced declines, with major shipbuilder HD Hyundai Heavy losing 0.77 percent, Hanwha Ocean falling 0.84 percent, and HD Korea Shipbuilding dipping 2.4 percent. In the financial sector, KB Financial declined 1.15 percent, and Shinhan Financial slipped 1.41 percent.
The Korean won was trading at 1,441.5 won against the U.S. dollar, up 8.3 won from the previous session, after once falling below the 1,440-won mark. This movement came on the news that the National Pension Service has resumed its strategic foreign exchange hedging to stabilize the FX market. On Wednesday, South Korea's FX authorities issued a verbal intervention as the local currency remained near its weakest level in 16 years against the U.S. dollar in recent weeks.