SEOUL, May 07 (AJP) - South Korean stocks surged to another record Thursday, with the benchmark KOSPI briefly topping the 7,500 mark for the first time as easing oil prices, renewed optimism over a potential U.S.-Iran agreement and another global surge in AI-linked chip shares fueled heavy buying in Seoul’s largest technology stocks.
The main index climbed as high as 7,531.88, breaking above the 7,500 mark after Wall Street’s three major indexes closed sharply higher overnight. The KOSDAQ also edged up 0.36 percent to 1,214.50 in early trading. The rally was again led by semiconductor heavyweights, which continued to dominate market momentum. Samsung Electronics rose 2.07 percent to trade at 271,500 won and SK hynix gained 1.12 percent to 1,619,000 won.
The advance followed another record-setting day in the United States, where the Dow Jones Industrial Average rose 1.24 percent while the S&P 500 and Nasdaq Composite climbed 1.46 percent and 2.02 percent, respectively, both setting fresh all-time highs.
Investor sentiment improved after U.S. President Donald Trump said Iran appeared willing to abandon its nuclear ambitions and pursue a deal, raising hopes that tensions in the Middle East could ease despite lingering geopolitical uncertainty.
Oil prices tumbled on expectations that a broader regional conflict could be avoided, easing inflation concerns that had weighed on global equities in recent weeks. Brent crude fell 7.83 percent to settle at $101.27 a barrel, while West Texas Intermediate crude dropped 7.03 percent to $95.08.
The global chip rally accelerated after U.S. chipmaker AMD posted surprisingly strong earnings, sending its shares up 18 percent overnight and lifting broader AI-related stocks.
NVIDIA climbed 5.77 percent after announcing plans to expand optical manufacturing facilities in the United States with Corning, while Intel gained 4.49 percent and Micron Technology advanced 4.12 percent.
The momentum spilled into Seoul, with semiconductor, auto and heavy industry shares remaining resilient despite heavy foreign selling, as retail investors stepped in to support the market after its recent record-breaking surge.
Auto stocks traded higher, with Hyundai Motor jumping 5.45 percent to 580,000 won and Kia advancing 2.91 percent to 159,100 won.
Among defense and heavy industry names, HD Hyundai Heavy Industries climbed 3.55 percent to 671,000 won, and Doosan Enerbility surged 6.85 percent to 135,700 won.
In the financial sector, Samsung Life Insurance edged up 0.34 percent to 299,000 won, while KB Financial Group slipped 0.38 percent to 158,300 won.
Battery-related shares underperformed the broader market, with LG Energy Solution falling 1.66 percent to 474,000 won. Hanwha Aerospace also dropped 3.21 percent to 1,387,000 won despite continued strength in defense-related plays overall.
Market concentration has intensified rapidly as Korea’s equity rally becomes increasingly dependent on semiconductor heavyweights.
As of Wednesday’s close, the combined market capitalization of Samsung Electronics common shares, Samsung Electronics preferred shares and SK hynix reached about 2,848 trillion won, accounting for roughly 47 percent of the KOSPI’s total market value of 6,058 trillion won and responsible for nearly 80 percent behind KOSPI rally.
Including related affiliates such as SK Square, Samsung C&T and Samsung Life Insurance pushes that figure above 50 percent, underscoring growing concerns that the market’s gains are becoming narrowly concentrated around a small group of conglomerate-linked AI beneficiaries.
The divergence between large and small stocks has widened sharply in recent weeks. Over the past month, the KOSPI large-cap index rose 38 percent, compared with gains of 21 percent for mid-cap shares and 11 percent for small-cap stocks.
Since the start of the year, when the KOSPI began its explosive climb on AI-driven optimism, large-cap stocks have surged 82 percent, more than four times the gain posted by small-cap shares.
Even during Wednesday’s historic surge into the 7,000 milestone, large-cap stocks climbed 7.22 percent, while mid-cap shares were nearly flat and small-cap stocks declined.
The growing divide reflects continued investor demand for large-cap stocks with stronger earnings outlooks amid ongoing geopolitical and energy market uncertainty.
Foreign investors bought a net 7.23 trillion won worth of KOSPI shares over the past month, with most inflows concentrated in Samsung Electronics, SK hynix and Doosan Enerbility.
Brokerages expect momentum in semiconductor, power equipment, defense, brokerage and renewable-energy shares to continue through the first half, as global AI infrastructure spending and liquidity-driven foreign inflows continue to dominate market direction.
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