SEOUL, May 06 (AJP) - South Korea’s benchmark KOSPI surged to a fresh record high Wednesday, sharply outperforming regional peers as foreign investors piled into semiconductor heavyweights, while most Asian markets posted more modest gains and Japan remained closed for the Golden Week holiday.
The KOSPI jumped 6.5 percent to close at 7,384.56, after moving between an intraday low of 7,093.00 and a high of 7,426.60, briefly breaking above the 7,400 level during the session.
The latest advance highlights the extraordinary pace of the rally, with the index surging from 4,949.59 on January 26 to above 7,300 in just over three months, driven largely by concentrated gains in semiconductor heavyweights.
Foreign investors purchased 3.13 trillion won ($2.15 billion) worth of shares, while retail and institutional investors sold 572.4 billion won and 2.31 trillion won, respectively, indicating that the rally was overwhelmingly driven by offshore flows.
Investor sentiment was underpinned by a strong lead from Wall Street, where the S&P 500 and the Nasdaq Composite closed at record highs, while the Dow Jones Industrial Average rose 0.7 percent. The Philadelphia Semiconductor Index climbed 4.2 percent.
Sentiment was further buoyed by easing geopolitical tensions after Marco Rubio said the U.S. military operation against Iran, dubbed “Operation Epic Fury,” had concluded successfully, easing concerns over potential disruptions in the Strait of Hormuz.
Oil prices extended declines, with Brent crude falling 1.4 percent to $108.3 per barrel and West Texas Intermediate crude dropping 1.4 percent to $100.8, while the VIX volatility index fell 5 percent to 17.38.
The easing risk environment supported the Korean won, which strengthened to 1,454.5 per dollar, down 1 percent from the previous session, extending its recovery toward levels seen before the recent escalation in Middle East tensions.
Despite South Korea’s heavy reliance on Gulf energy imports, the KOSPI has remained resilient, reflecting strong global liquidity conditions and concentrated inflows into semiconductor exporters.
Sector gains were led by semiconductors and financials, with chip-related stocks and equipment makers jumping 12.1 percent. Life insurers and brokerage firms rose 11.2 percent each, supported by expectations of improved earnings amid surging trading activity.
Among large-cap stocks, Samsung Electronics surged 14.4 percent to close at 266,000 won, supported by expectations of a prolonged memory upcycle and reports that Apple is considering the company as a potential foundry partner alongside Intel as part of efforts to diversify supply chains beyond TSMC.
SK hynix rose 10.6 percent to 1,601,000 won, while SK Square gained 9.9 percent to 1,089,000 won.
LG Energy Solution added 2.12 percent to 482,000 won, and Hyundai Motor rose 2.0 percent to 550,000 won.
In contrast, Doosan Enerbility slipped 0.2 percent to 127,000 won, Hanwha Aerospace fell 2.2 percent to 1,433,000 won, while Samsung Biologics edged down 0.3 percent to 1,480,000 won and Samsung Electro-Mechanics declined 0.7 percent to 912,000 won.
The KOSDAQ slipped 0.3 percent to close at 1,210.20, after moving between 1,197.01 and 1,220.90. Retail investors bought 610.1 billion won, while foreigners and institutions sold 61.6 billion won and 543.9 billion won, respectively.
The divergence reflected continued weakness in biotech shares and fund rotation into large-cap semiconductor stocks on the main board.
Among KOSDAQ heavyweights, Ecopro BM rose 6.03 percent to 228,500 won, and Ecopro gained 4.5 percent to 162,800 won, while Rainbow Robotics advanced 2.5 percent to 702,000 won.
However, Alteogen fell 2.6 percent to 363,500 won, Samchundang Pharm slipped 0.9 percent to 406,000 won, and Lino Industrial dropped 3.4 percent to 116,700 won. HLB rose 1.3 percent to 61,700 won.
Elsewhere in Asia, Hong Kong’s Hang Seng Index rose 1.1 percent to 26,178.8, and China’s Shanghai Composite gained 1.14 percent to 4,158.88, while Japanese markets remained closed for the Golden Week holiday.
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