SEOUL, February 23 (AJP) - Korean stocks closed higher Monday after briefly touching the 5,900 mark for the first time, although heavy foreign selling erased much of the early advance.
The benchmark KOSPI rose 0.7 percent to finish at 5,846.1, after surging 2.1 percent in early trade to hit an all-time high of 5,931.9. The index later slipped down to 5,846.1 before the trading session ended. The KOSPI 200 gained 0.7 percent to 865.5.
Volatility intensified as foreign investors dumped 1.10 trillion won, ($763.6 million) while institutions also sold 144.0 billion won. Individuals stepped in aggressively, purchasing 1.08 trillion won and effectively defending the 5,800 level.
The rally was initially fueled by relief after the U.S. Supreme Court ruled that President Donald Trump’s reciprocal tariff policy was unlawful, easing trade uncertainty. However, renewed geopolitical tension in the Middle East — after Trump reportedly set a deadline for Iran’s nuclear rollback — tempered risk appetite during the session.
Among large-cap stocks, Samsung Electronics rose 1.5 percent to 193,000 won, extending its momentum above the 190,000 threshold. SK hynix edged up 0.2 percent to 951,000 won after earlier approaching the symbolic 1 million-won level.
Software stocks outperformed sharply, with the sector climbing more than 8 percent, as artificial intelligence–related investment momentum broadened across technology names. MLCC maker Samwha Capacitor surged 30 percent on expectations of price hikes in AI server components following similar signals from Japan’s Murata Manufacturing.
Automakers also drew strong interest. Hyundai Motor gained 2.8 percent to 523,000 won after reports that the group plans to invest roughly 10 trillion won in Saemangeum to build AI, hydrogen and robotics industrial clusters.
Defense and aerospace names advanced amid rising geopolitical risk. Hanwha Aerospace climbed 8.1 percent, while Korean Air rose 5.2 percent ahead of the upcoming Drone Show Korea exhibition in Busan.
In contrast, shipbuilding shares were mixed. Hanwha Ocean fell 1.8 percent despite expectations of potential LNG dual-fuel container ship orders from Japan’s ONE shipping group.
The tech-heavy KOSDAQ slipped 0.2 percent to 1,152.0. Foreign investors bought 180.5 billion won, while institutions sold 362.3 billion won. Individuals added 218.8 billion won.
Korean won strengthened 0.5 percent to 1,440.8 per dollar. Precious metals rallied, with gold rising to $5,080.9 per ounce and silver climbing to $82.3.
Hong Kong’s Hang Seng Index rose than 2.4 percent, led by financial and technology shares. The Tokyo exchange was closed for the Emperor's birthday and the Shanghai market is set to resume trading on Tuesday after a holiday closure.
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