South Korea's KOSPI index closed nearly 2% higher on Thursday, reversing early losses after September trade data showed record chip exports. Samsung Electronics and SK Hynix led the rally, while the won slipped and foreign investors sold shares.
The KOSPI closed 133.31 points, or 1.95% higher, at 6,971.35, after falling as much as 1.1% earlier in the session. The index snapped three straight sessions of decline, posting its biggest daily percentage rise since September 18.
Chipmakers drove the reversal. Samsung Electronics rose 2.79% and SK Hynix gained 3.21%, leading the benchmark higher. Of the 916 issues traded, 542 advanced while 332 declined.
Record exports lift the chip sector
South Korea's exports jumped 83.5% in September from a year earlier to a record $120.9 billion, beating the median market forecast for a 62% increase, as semiconductor shipments more than tripled on global AI spending. Factory activity also grew in September at its strongest pace in four months, with export demand hitting its fastest pace in 15-1/2 years, led by the chip and auto sectors, a survey showed.
According to Reuters: "The domestic market was led by strength in the chip sector after export data." Seo Sang-young, an analyst at Mirae Asset Securities, made the comment, adding that it remains to be seen whether growth rates will keep improving.
The upbeat domestic data followed Micron Technology's forecast of quarterly revenue above estimates on Wednesday, with the chipmaker saying customers had raised commitments under its long-term supply agreements to $32 billion, signalling unabated demand for AI memory chips.
Currency slips as foreigners sell
Despite the rally in the stock market, foreign investors were net sellers of shares worth 547.3 billion won, or $402.93 million. The won was quoted at 1,358.4 per dollar, 0.20% lower than its previous close of 1,355.7.
Bond yields moved in opposite directions: the three-year treasury yield fell 0.2 basis points to 4.009%, while the 10-year yield rose 2.8 basis points to 4.429%. South Korea's finance minister said authorities would closely monitor financial markets and take pre-emptive action if needed.
Source: Investing.com
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