Seoul stocks rise 1.65% on chip gains despite Middle East tensions
Seoul's KOSPI closed up 1.65% at 7,007.72 on Monday, its third straight gain, as semiconductor and AI-linked shares drew institutional buying. The won strengthened, while Brent crude above $100 kept Middle East and inflation risks in view.
The KOSPI gained 113.49 points to close at 7,007.72, extending its winning streak to a third consecutive session. Investor sentiment toward artificial intelligence and semiconductor stocks improved, though elevated crude oil prices remained a concern amid persistent inflationary and geopolitical risks in the Middle East. Brent crude traded above US$100 a barrel.
Trade volume was light at 232.76 million shares worth 19.69 trillion won, or US$14.26 billion. Decliners outnumbered advancers 550 to 310. Institutions bought a net 1.49 trillion won, while foreigners and individuals sold a net 181.89 billion won and 2.98 trillion won, respectively.
"The local stock market was bullish as semiconductor shares rallied, led by institutional net buying," Lee Kyoung-min, an analyst at Daishin Securities, said. Expectations of continued strong demand kept sentiment toward AI-related stocks upbeat and helped fuel gains in chip shares.
Market bellwether Samsung Electronics jumped 4.98 percent to 274,000 won, while its chip rival SK hynix gained 0.59 percent to 1.87 million won. SK Square, the parent company of SK hynix, surged 4.45 percent to 1.12 million won. In contrast, leading automaker Hyundai Motor fell 1.64 percent to 359,000 won, and battery maker LG Energy Solution shed 3.3 percent to 352,000 won.
The Korean won was quoted at 1,381 won per U.S. dollar as of 3:30 p.m., up 4.5 won from the previous stock market session's close. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 2.1 basis points to 4.056, and the return on benchmark five-year government bonds increased 5 basis points to 4.275.