SEOUL, November 11 (AJP) - South Korean chip stocks rallied on Wednesday despite Nvidia's 5.5 percent overnight slide, as foreign investors bought KOSPI-listed shares for a second consecutive session and the KOSDAQ surged 5.6 percent on expectations of government support for the junior market.
The benchmark KOSPI rose 136.23 points or 2.6 percent to close at 5,375.36, extending the previous day's 4.4 percent rebound, while the KOSDAQ triggered a buy-sidecar for a second consecutive session and closed at its intraday high, moving back above the 700 mark. Japan's Nikkei 225 gained 1.3 percent, marking its third consecutive session of gains.
Foreigners net bought 655.3 billion won (US$491.1 million) on the main board. Over two sessions that comes to about 1 trillion won, a sliver of the nearly 30 trillion won ($22.2 billion) they pulled from the KOSPI between the start of October and Monday.
The KOSPI opened below Tuesday's close and slipped to an intraday low of 5,207.44 as Wall Street's losses carried over. It turned positive by late morning as foreigners switched to buying.
Nvidia fell to $168.89 overnight after its independent directors opened an investigation into reports tying CEO Jensen Huang to an alleged Chinese intelligence asset. U.S. core consumer prices rose 0.3 percent for a third straight month, pushing the 10-year Treasury yield back to 5.0 percent.
Samsung Electronics and SK hynix turned higher from early losses after CoreWeave, a U.S. artificial intelligence (AI) cloud operator, jumped about 12 percent in after-hours trading following its results.
SK hynix rose 5.4 percent to 1,277,000 won ($957.0). Samsung Electronics gained a smaller 3.6 percent to 206,000 won ($154.4).
Samsung Electro-Mechanics climbed 4.7 percent to 923,000 won ($691.7). SK Square, SK hynix's largest shareholder, rose by the same 4.7 percent to 796,000 won ($596.5).
Non-chip heavyweights lagged. Samsung Biologics fell 2.6 percent to 1,430,000 won ($1,071.6). Hyundai Motor also slipped 0.9 percent to 272,500 won ($204.2).
Institutions sold a net 482.3 billion won ($361.4 million) and individuals 715.1 billion won ($535.9 million). Retail investors have now sold into both days of the rebound, after unloading 1.35 trillion won ($1.0 billion) on Tuesday.
The South Korean won strengthened, with the dollar fetching 1,334.4 won late in the afternoon, down 10.2 won.
The KOSDAQ gained 37.49 points to 705.10. Institutions were net buyers of 313.3 billion won ($234.8 million) while individuals and foreigners sold. The Korea Exchange, the country's bourse operator, suspended program buy orders for five minutes at aroung 11:30 a.m. after KOSDAQ 150 futures jumped 6.1 percent.
Market watchers credited expectations of government support, including a tiered system the government and the exchange plan to launch in early 2027. The system would sort KOSDAQ companies into premium and standard leagues, with promotion and relegation between them.
The Financial Supervisory Service (FSS), the country's financial watchdog, denied rumors that it would hold a meeting to discuss additional market support measures. The government's latest move, implemented last week after the KOSPI plunged 11.7 percent over a five-session period, temporarily waived brokers' requirement to maintain margin-loan collateral at 140 percent through Jan. 31.
In Tokyo, the Nikkei 225 rose 789.01 points to 61,248.59. Bargain hunting and gains in chip-related heavyweights lifted the index from its lowest levels since May, the Chunichi Shimbun reported. It remains about 15 percent below its 2026 high of 72,366.34, set June 25.
AJP Takeaways
- South Korean chipmakers rose despite Nvidia's 5.5 percent slide on Tuesday, with SK hynix up 5.4 percent and Samsung Electronics up 3.6 percent.
- Foreigners bought a net 655.3 billion won ($491.1 million) of KOSPI shares, a second day of buying after nearly 30 trillion won ($22.2 billion) of selling from the start of October through Monday.
- The KOSDAQ jumped 5.6 percent on hopes of government support, though the Financial Supervisory Service denied a rumor of a stimulus meeting.
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