SEOUL, May 04 (AJP) - South Korea’s benchmark KOSPI jumped more than 3 percent at the open on Monday to test a new plateau above 6,800 on strong institutional buying in chip and other large-cap stocks.
Market sentiment was also influenced by geopolitical developments after U.S. President Donald Trump said the United States would begin safely escorting ships from “neutral and innocent” countries through the Strait of Hormuz under a new initiative referred to as “Project Freedom.” He described the move as a humanitarian effort but warned that the U.S. would respond strongly to any interference, while also noting ongoing positive discussions with Iran.
As of 10:42 a.m., South Korea’s benchmark KOSPI rose 3.40 percent to 6,822.94.
Shares of SK hynix and its largest shareholder SK Square surged in early trading, supported by improved investor sentiment driven by strong earnings from global Big Tech firms and growing investment in artificial intelligence infrastructure.
The chipmaker was 8.7 percent higher at 1,399,000 won, hitting an intraday record high, while SK Square jumped 12.84 percent to 949,000 won.
Among other heavyweights, tech shares led the gains, with Samsung Electronics rising 2.15 percent and its preferred shares up 2.84 percent, while Samsung Electro-Mechanics climbed 5.17 percent.
Auto stocks were also strong, with Hyundai Motor and Kia gaining 1.88 percent and 2.83 percent, respectively.
In the industrial and defense sector, Hanwha Aerospace rose 4.02 percent and HD Hyundai Heavy Industries added 1.17 percent, while Doosan Enerbility slipped 0.71 percent.
Battery makers showed modest gains, with LG Energy Solution up 1.41 percent and Samsung SDI rising 1.29 percent.
Biotech and financial stocks were mixed, as Samsung Biologics fell 0.61 percent and KB Financial Group declined 1.25 percent, while Samsung Life Insurance edged up 1.20 percent.
On the junior KOSDAQ, most major stocks traded higher, with the index up 1.93 percent to 1,215.35, led by battery and materials names such as EcoPro and EcoPro BM, which gained 2.94 percent and 4.13 percent, respectively.
Pharmaceutical and biotech stocks also advanced, including Alteogen, HLB, ABLBio and LigaChem Biosciences, which rose 2.44 percent, 2.14 percent, 0.07 percent and 0.87 percent, respectively, alongside Peptron, up 3.07 percent.
Industrial and equipment-related shares also moved higher, with Rainbow Robotics gaining 3.77 percent, LEENO Industrial up 0.25 percent, Kolon TissueGene climbing 4.12 percent, Jusung Engineering edging up 0.24 percent and Wonik IPS rising 1.37 percent.
Only Samchundang Pharm bucked the trend, slipping 0.36 percent.
Meanwhile, the Korean won strengthened to 1,472.40 per dollar from 1,483.30 in the previous session.
Elsewhere in Asia, Hong Kong’s Hang Seng Index rose 1.74 percent to 26,225.42.
Japan’s Nikkei 225 was closed on Monday for Greenery Day, while China’s Shanghai Composite Index remained closed for the Labor Day holiday period.
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