SEOUL, May 11 (AJP) - South Korea’s benchmark KOSPI outperformed regional and global peers Monday, surging more than 4 percent to another record high as investors piled into semiconductor and AI infrastructure-related shares despite escalating geopolitical tensions in the Middle East and heavy foreign selling.
The benchmark KOSPI closed up 4.3 percent at 7,822.24 after moving between a low of 7,713.49 and a record intraday high of 7,899.30. The rally contrasted with a 0.5 percent decline in Japan’s Nikkei 225, while China’s Shanghai Composite rose 1.03 percent and Hong Kong’s Hang Seng Index traded little changed.
Market momentum remained heavily concentrated in semiconductors and AI-linked infrastructure plays. Samsung Electronics jumped 6.3 percent to 285,500 won, while SK hynix soared 11.5 percent to 1,880,000 won ($1,278) as investor appetite for high-bandwidth memory and AI server demand continued to intensify.
Investor enthusiasm also spread to AI infrastructure and networking-related names. Optical communication stocks gained 7.6 percent and communication equipment shares climbed 5.9 percent.
Among the biggest gainers, Daehan Optical Communication surged 25.1 percent to 27,950 won as expectations grew for a structural increase in global fiber-optic demand tied to AI data center expansion. The company recently completed the acquisition of a 90 percent stake in U.S.-based Encap America, strengthening its foothold in North American power and optical infrastructure markets.
Equipment maker Jusung Engineering climbed 17.9 percent to 163,800 won, while SK Square rose 8.1 percent to 1,187,000 won on continued optimism over AI-related portfolio revaluation.
Shipbuilding shares also traded firmly after Seoul and Washington moved to deepen bilateral cooperation in the U.S. shipbuilding sector. Samsung Heavy Industries advanced 6.3 percent to 33,950 won after the Korean government said it would establish a Korea-U.S. shipbuilding partnership center in Washington as part of broader industrial cooperation initiatives tied to the so-called MASGA project.
Despite the strong rally, foreign investors remained aggressive sellers, unloading 3.48 trillion won ($2.37 billion) worth of KOSPI shares. Retail investors poured in 2.87 trillion won, while institutions bought a net 619.2 billion won worth of shares.
Market volatility briefly intensified during early trading, prompting the Korea Exchange to trigger a buy-side sidecar on the KOSPI market at 9:29 a.m. after KOSPI200 futures surged more than 5 percent.
In contrast, the tech-heavy KOSDAQ underperformed the main board and ended nearly flat, slipping 0.03 percent to 1,207.3 after moving between 1,190.6 and 1,212.9 during the session.
Foreign investors bought a net 116.0 billion won worth of KOSDAQ shares, while retail investors added 85.1 billion won. Institutions, however, sold a net 163.6 billion won, limiting broader upside momentum.
Speculative momentum remained concentrated in newly listed and AI infrastructure-related shares. Cosmo Robotics closed at 24,000 won, quadrupling its IPO price of 6,000 won on its KOSDAQ debut. The wearable robotics company drew strong retail demand during last month’s subscription process, which recorded a competition ratio exceeding 1,114.1 to 1.
Battery-related shares remained weak despite the broader rally, with EcoPro BM falling 6.5 percent to 222,000 won.
Meanwhile, oil prices rebounded sharply as geopolitical tensions in the Middle East escalated. Brent crude futures climbed 3.4 percent to $104.8 per barrel, while West Texas Intermediate crude rose 3.6 percent to $98.9 after U.S. President Donald Trump rejected Iran’s latest response to a U.S. peace proposal and reports emerged of renewed drone attacks near the Persian Gulf.
Despite rising oil prices and renewed concerns surrounding the Strait of Hormuz, Korean equities remained largely fixated on AI-driven growth expectations.
The Korean won weakened slightly to 1,471.4 per dollar, while the Volatility Index, widely known as Wall Street’s fear gauge, rose 0.6 percent to 17.19.
Copyright ⓒ Aju Press All rights reserved.
