SEOUL, October 01 (AJP) - Korean investors turned to U.S.-linked energy and semiconductor themes Thursday morning after Seoul and Washington laid out $142 billion energy project plans including eight nuclear reactors under South Korea's U.S. investment package.
The benchmark KOSPI stood at 6,821.60 as of 10:40 a.m., down 0.2 percent from the previous session after moving between a high of 6,854.21 and a low of 6,765.06.
Retail investors bought 322.9 billion won ($237 million) worth of KOSPI listed shares, while foreign investors sold 645 billion won and institutions offloaded 130.1 billion won.
Much of the market's attention was on Washington after U.S. President Donald Trump unveiled plans for up to $200 billion in South Korean investment in U.S. energy infrastructure.
South Korea has moved onto executing its $200 billion strategic investment pledge to the United States with a $22.3 billion Texas power project, alongside a $120 billion nuclear cooperation framework and a conditional review of Alaska LNG to bolster U.S. energy supplies for its AI data center buildout.
The distinction quickly translated into trading themes in Seoul.
Steel shares surged in early trading on expectations that construction of the roughly 1,300-kilometer Alaska gas pipeline could generate demand for steel and pipe products if the project proceeds.
Daehan Steel jumped 20.2 percent to 9,360 won as of 9:11 a.m., while Dongkuk Steel rose 13.8 percent and Korea Steel gained 6.1 percent.
Doosan Enerbility, one of Korea's major nuclear power equipment suppliers, gained 0.7 percent to 82,200 won.
Investors were also assessing another major overnight development for Korea's semiconductor sector.
Micron Technology reported record fiscal fourth-quarter revenue of $54.23 billion, nearly five times the $11.32 billion posted a year earlier, as booming artificial intelligence investment drove demand for high-bandwidth memory and tightened broader DRAM supply.
Micron projected revenue of about $61.5 billion for the following quarter, above market expectations, as demand for AI servers and memory chips remained strong.
The results provided support to Korea's broader semiconductor supply chain, although the country's two largest memory manufacturers showed little movement.
SK hynix edged up 0.1 percent to 1,778,000 won, while Samsung Electronics was flat at 268,500 won. Hanmi Semiconductor rose 1.9 percent to 261,250 won.
High bandwidth memory related stocks gained about 4 percent as a group.
Buying was stronger among semiconductor equipment and system-chip stocks.
SemiFive surged 12.8 percent to 20,600 won and SFA Semicon climbed 8.2 percent to 11,660 won. HPSP gained 6 percent to 67,400 won, Wonik IPS rose 5.4 percent to 138,400 won and Jusung Engineering advanced 2.4 percent to 238,000 won.
The tech-heavy KOSDAQ significantly outperformed the main board, rising 2.4 percent to 876.26. It reached a high of 876.94 after touching a low of 851.92.
Foreign investors bought 120.3 billion won worth of KOSDAQ shares and institutions purchased 48.3 billion won. Retail investors sold 141.3 billion won.
Pharmaceutical stocks gained 2.5 percent. Sam Chun Dang Pharm surged 9.7 percent to 189,500 won, Celltrion advanced 2.6 percent to 182,300 won and Samsung Biologics rose 2 percent to 1,419,000 won.
Gaming stocks climbed 3.9 percent, led by NCSoft, which jumped 11.2 percent to 232,500 won. JoyCity gained 6.3 percent to 1,217 won, while Krafton rose 1.7 percent to 198,200 won.
Auto parts shares gained 2.7 percent. Hyundai Mobis rose 4 percent to 381,500 won and Hanon Systems advanced 2.7 percent to 3,615 won.
Still, higher U.S. borrowing costs continued to weigh on the broader market.
The U.S. 10-year Treasury yield climbed above 5.3 percent overnight, reaching its highest level in more than two decades, as investors grappled with government debt, inflation risks and heavy borrowing tied in part to the AI investment boom.
Oil prices remained elevated despite edging lower during Asian trading.
Brent crude slipped 0.2 percent to $97.82 a barrel, while West Texas Intermediate fell 0.4 percent to around $90.10. Investors were weighing recovering Middle Eastern crude flows against continued uncertainty over U.S.-Iran negotiations.
The Korean won weakened 0.3 percent to 1,361.6 won against the U.S. dollar.
Throughout the Asian markets, Japan's Nikkei 225 jumped 1.8 percent to 67,941.40. Mainland Chinese and Hong Kong markets were closed for the National Day holiday.
Copyright ⓒ Aju Press All rights reserved.