SEOUL, July 15 (AJP) — South Korean stocks staged a powerful rebound Wednesday as softer-than-expected U.S. inflation and renewed optimism over the artificial intelligence semiconductor cycle triggered a broad-based buying spree led by SK hynix and Samsung Electronics.
As of 9:57 a.m., the benchmark KOSPI surged 6.81 percent to 7,323.60, while the tech-heavy KOSDAQ jumped 5.39 percent to 826.24, recovering sharply after recent market volatility.
The rally tracked overnight gains on Wall Street after U.S. inflation eased more than expected, tempering fears of further Federal Reserve rate hikes and reviving appetite for technology stocks.
The Nasdaq Composite rose 0.90 percent and the S&P 500 gained 0.38 percent after the U.S. Consumer Price Index increased 3.5 percent in June from a year earlier, slowing from May's 4.2 percent and coming in below economists' expectations of 3.8 percent.
Lower Treasury yields boosted risk appetite, particularly for semiconductor shares that continue to benefit from strong artificial intelligence investment.
Leading the advance was SK hynix, whose U.S.-listed ADRs soared 27.29 percent overnight. Sentiment received an additional boost after Barclays initiated coverage with an Overweight rating and a $330 price target, arguing investors continue to underestimate the company's earnings potential as high-bandwidth memory prices strengthen and its leadership in AI memory widens.
The upbeat outlook lifted semiconductor stocks globally. Nvidia climbed 4.06 percent, Micron Technology gained 4.92 percent, Sandisk advanced 5.01 percent and the Philadelphia Semiconductor Index rose 2.54 percent.
The momentum quickly spilled into Seoul.
SK hynix jumped 11.19 percent to 2,127,000 won, while Samsung Electronics gained 6.18 percent to 279,250 won.
The rally extended throughout the broader SK and Samsung groups.
SK Square, SK hynix's largest shareholder, surged 16.72 percent to 1,389,000 won.
Samsung Electro-Mechanics climbed 9.37 percent, Samsung Electronics preferred shares rose 6.75 percent, Samsung Life Insurance gained 7.89 percent, Samsung C&T added 4.94 percent and Samsung Biologics advanced 2.92 percent.
Cyclical sectors also joined the rally.
Hyundai Motor rose 2.47 percent and Kia added 3.22 percent, while LG Energy Solution gained 4.50 percent. HD Hyundai Heavy Industries advanced 2.84 percent and Doosan Enerbility climbed 4.37 percent.
Financial stocks posted comparatively modest gains, with KB Financial Group rising 1.00 percent and Shinhan Financial Group adding 2.21 percent.
Investor sentiment also improved after U.S. President Donald Trump withdrew a proposal to impose transit fees on commercial vessels passing through the Strait of Hormuz, easing concerns over another escalation in Middle East shipping risks and raising hopes for renewed diplomatic negotiations.
Attention is now turning to earnings from Dutch chip equipment maker ASML later Wednesday and Taiwan Semiconductor Manufacturing Co. on Thursday, with investors looking for fresh signals on the sustainability of AI-driven semiconductor demand.
Elsewhere in Asia, Japan's Nikkei 225 gained 0.45 percent while Shanghai's Composite Index rose 1.4 percent.
The Korean won strengthened sharply to 1,488.6 per U.S. dollar
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