KOSPI Rallies Toward Record Highs on Chip Stocks and Geopolitical Optimism
South Korea’s KOSPI surged on Wednesday, moving closer to its record levels as strong gains in semiconductor stocks and improving sentiment around U.S.-Iran diplomacy boosted investor confidence.
The benchmark index climbed 3.6% to 6,183.21 points by 01:29 GMT, remaining just below its all-time high of 6,347.4 points reached in February.
AI Demand Drives Semiconductor Stock Surge
Investors increased exposure to major chipmakers, supported by expectations of strong demand fueled by artificial intelligence. The semiconductor sector continued to lead the market rally, reinforcing bullish momentum in Korean equities.
Shares of Samsung Electronics extended their upward trend, while SK Hynix surged to new record highs, reflecting strong investor interest in memory chip producers.
Global Market Strength Supports Risk Appetite
Global markets also contributed to the positive sentiment. Overnight, U.S. equities posted solid gains, with the S&P 500 rising approximately 1.2% and closing just below its record high. Meanwhile, the Nasdaq jumped nearly 2%, led by technology stocks.
The rally was supported by easing oil prices and renewed optimism that diplomatic talks between the United States and Iran could resume.
Middle East Developments Boost Investor Confidence
Market sentiment was further strengthened by cautious optimism surrounding reduced tensions in the Middle East. U.S. President Donald Trump indicated earlier this week that discussions with Iran may be making progress, raising expectations of a potential diplomatic breakthrough despite ongoing risks.
Cooling Inflation and Oil Prices Support Equities
Lower oil prices and softer U.S. producer inflation data provided additional support for equities. These developments reinforced expectations that global inflationary pressures may be easing, creating a more favorable environment for risk assets.
