The KOSPI rose 1.9 percent to 4,183.52 in early trading, while the KOSDAQ gained 1 percent to 909.09.
SK hynix briefly touched 600,000 won ($419) on heavy institutional and retail buying, driven by broad conviction that the world’s leading HBM supplier will dominate the AI memory cycle. Nomura Securities projected the company could overtake Taiwan Semiconductor Manufacturing Co. (TSMC) in operating profit by 2027, raising its target price by more than 55 percent from 540,000 won to 840,000 won. SK Securities went further, lifting its target to 1 million won.
Investor sentiment strengthened after President Donald Trump and President Lee Jae Myung concluded a bilateral summit on October 29 that finalized the long-delayed U.S. import tariff framework. The agreement removed one of the biggest overhangs for the Korean economy and helped revive appetite for local equities.
Morgan Stanley raised its 2025 growth forecast for South Korea to 1.6–1.7 percent from 1.5 percent, citing reduced risks tied to Korean institutional investments in the United States. The firm said Washington’s new investment cap would help contain capital outflows, while lower U.S. tariffs on auto parts would restore price competitiveness for Korean-made goods.
The Federal Reserve’s rate cut at its October FOMC meeting—its first reduction this year—added external support. Lower U.S. borrowing costs are expected to ease global liquidity pressures and draw more capital into Asia’s biggest semiconductor hub.
Entertainment stocks also rallied after JYP Entertainment founder and chief producer Park Jin-young met with Chinese President Xi Jinping, fueling speculation that Beijing may be preparing to lift its unofficial ban on Korean pop culture. JYP jumped 6.7 percent to 86,300 won, while SM Entertainment rose 3.4 percent, Cube Entertainment gained 3 percent, and HYBE advanced 0.9 percent.
Market enthusiasm grew after reports that Xi offered positive remarks on Korean artists performing in China during a state banquet following Saturday’s Korea–China summit. Park, who serves as JYP’s chief creative officer, also co-chairs the Presidential Commission for Cultural Exchange.
Elsewhere in Asia, China’s Shanghai Composite Index slipped 0.2 percent to 3,947.14, while Hong Kong’s Hang Seng Index inched up 0.3 percent to 25,981.31.
In Taipei, the TAIEX rose 0.6 percent to 28,399.55, though TSMC—Taiwan’s $1.5 trillion market-cap champion—fell 1.3 percent to $300.4.
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