SEOUL, May 06 (AJP) - What once seemed improbable has rapidly become reality as South Korea’s benchmark KOSPI vaulted above the 7,300 mark on Wednesday, just three weeks after reclaiming the 6,000 level as feverish foreign buying turbocharged semiconductor and AI infrastructure stocks despite lingering uncertainty surrounding the Strait of Hormuz crisis.
As of 10:09 a.m., the KOSPI stood at 7,325.31, up 5.60 percent from Monday’s close, after surging to an intraday high of 7,338.61 earlier in the session.
Foreign buying total 1.25 trillion won, overwhelming local selling. The celebration however was heavily skewed with losers outnumbering gainers by 674 to 204.
The move marked the index’s first break above the 7,300 threshold and underscored the extraordinary pace of the rally after the KOSPI first crossed the 6,000 mark on Feb. 25.
The Korean won also recovered to near pre-war levels in the 1,450 range against the U.S. dollar. The dollar-won exchange rate fell to 1,457.70 won from 1,462.8 won in the previous session.
The KOSPI has remained remarkably resilient despite the Middle East war and South Korea’s heavy dependence on Gulf energy imports for manufacturing and exports.
The benchmark first broke above 4,000 in October last year, topped 5,000 in January and crossed 6,000 a month later, before storming into the 7,000 era within barely half a year.
The latest leg higher followed another record-setting session on Wall Street overnight, where both the S&P 500 and the Nasdaq Composite closed at all-time highs as easing oil prices and optimism surrounding AI-driven semiconductor demand outweighed lingering geopolitical concerns in the Middle East.
Investor sentiment improved after reports indicated that the fragile ceasefire between the United States and Iran was largely holding despite intermittent clashes, easing fears of supply disruptions and pushing oil prices lower. West Texas Intermediate crude futures fell 3.90 percent to settle at $102.27 a barrel.
Technology shares led gains in the United States. Intel jumped nearly 13 percent on news of fresh semiconductor supply negotiations with Apple, while the Philadelphia Semiconductor Index soared 4.23 percent. Advanced Micro Devices surged another 15 percent in after-hours trading after posting strong first-quarter earnings.
The global semiconductor rally spilled into Seoul, fueling aggressive buying in chip-related shares.
Samsung Electronics surged 12.26 percent to 261,000 won, while SK hynix jumped 9.68 percent to 1,587,000 won, with both hitting fresh intraday record highs.
SK Square, the largest shareholder of SK hynix, soared 10.80 percent to break above the 1 million won mark.
Brokerage firms also rallied sharply on expectations that surging trading activity would boost commissions and earnings. Mirae Asset Securities jumped 15.22 percent to a fresh 52-week high, while Kiwoom Securities advanced 10.06 percent.
Automakers and battery-related shares also traded higher, with Hyundai Motor gaining 3.34 percent, Kia rising 1.69 percent and LG Energy Solution adding 0.11 percent.
Defense and shipbuilding-related shares, however, lagged behind the broader market rally. Hanwha Aerospace fell 1.30 percent, while HD Hyundai Heavy Industries slipped 4.26 percent.
HMM also declined 1.65 percent after a fire broke out aboard one of its cargo vessels anchored near the Strait of Hormuz on Monday, adding another layer of uncertainty to already fragile global shipping routes.
Meanwhile, the tech-heavy KOSDAQ bucked the broader rally, slipping 0.90 percent to 1,202.83.
Elsewhere in Asia, Japanese markets remained closed for the Golden Week holiday.
Hong Kong’s Hang Seng Index traded higher, rising 0.54 percent to 26,037.53 and China’s Shanghai Composite Index also advanced, gaining 1.05 percent to 4,155.44.
Copyright ⓒ Aju Press All rights reserved.
