South Korean Shares Hit Three-Week High As Chipmakers Rally.
✧ GENERATE BRIEFING +
South Korean equity markets surged nearly 2% on Tuesday, pushing the benchmark KOSPI up 133.95 points to close at 7,129.34—marking its highest intraday level in three weeks and extending its winning streak to four consecutive sessions. The robust market advance was overwhelmingly spearheaded by heavyweight semiconductor champions, with Samsung Electronics advancing 2.59% and SK Hynix rallying 3.98%. Investor sentiment toward the tech sector rebounded strongly as earlier anxieties surrounding the long-term sustainability of global artificial intelligence infrastructure investments began to moderate, reassuring markets of steady demand for advanced memory chips.The tech-led rally successfully insulated the broader index from localized pullbacks across other heavy industries, which saw LG Energy Solution decline 1.38% alongside minor slips in automakers Hyundai Motor (-0.64%) and Kia (-0.47%). Meanwhile, supporting the broader macroeconomic backdrop, revised data from the Bank of Korea confirmed that the national economy expanded 0.6% in the second quarter compared to the previous quarter, matching preliminary July estimates.
South Korean equities climbed nearly 2% on Tuesday, reaching their strongest intraday level in three weeks as gains in major semiconductor stocks lifted the broader market.
The KOSPI rose 133.95 points, or 1.91%, to 7,129.34 by 0217 GMT, extending its winning streak to a fourth session. The index reached its highest intraday level since August 18.
Samsung Electronics gained 2.59%, while SK Hynix advanced 3.98%, making the two heavyweight chipmakers the main drivers of the benchmark’s advance.
Investor sentiment toward the semiconductor sector improved as concerns over the sustainability of artificial-intelligence investment eased. Analysts said the recent weakness in chip stocks had prompted doubts about AI-related demand, but those concerns are now moderating.
The rally came despite mixed performances among other major companies. LG Energy Solution fell 1.38%, while Hyundai Motor and Kia declined 0.64% and 0.47%, respectively.
South Korea’s economic backdrop also provided some support. Revised central bank data showed the economy expanded 0.6% in the second quarter from the previous quarter, unchanged from the preliminary estimate released in July.
The semiconductor rally also reflects the continuing importance of AI infrastructure demand for South Korea’s economy. Samsung and SK Hynix are among the major global suppliers benefiting from rising demand for advanced memory chips used in AI systems.
