SEOUL, July 22 (AJP) - AI-theme turbocharged South Korean chip and robotics stocks on Wednesday, sending both the main and secondary market indices well above 5 percent as big-tech earnings reaffirmed AI demand and investment.
A buy-side sidecar was triggered on the KOSPI at 9:06:02 a.m., halting program buying for five minutes after the KOSPI 200 futures index surged 5.40 percent.
As of 9:06 a.m., the KOSPI was up more than 6.1 percent at 7,155.5, while the tech-heavy KOSDAQ had climbed 4.2 percent to 784.8. The KOSPI reclaimed the 7,000 mark for the first time in a week.
SK hynix jumped 8 percent to 1,986,000 won, while Samsung Electronics gained 5.4 percent to 273,000 won.
Foreign investors returned in full force, buying a net 1.2 trillion won ($866 million) worth of shares, triggering retail profit-taking with net sales of 708.6 billion won.
The rally was broad-based, with gainers outnumbering decliners 740 to 139 on the KOSPI. The AI supply chain advanced almost across the board. Electronics and equipment stocks surged an average 10.5 percent, while electronics shares gained 8.2 percent on mounting expectations that the AI boom will extend into robotics.
The rally followed another strong overnight advance in U.S. semiconductor shares. The Philadelphia Semiconductor Index jumped 5.21 percent, extending gains for a second straight session as investors bought back beaten-down chip stocks on expectations of sustained AI investment and robust South Korean semiconductor exports.
Micron Technology soared 12.17 percent, while SanDisk gained 14.27 percent, Western Digital 12.51 percent and Seagate Technology 11.14 percent. SK hynix's American depositary receipts also jumped 13.75 percent to close at $171.94.
Nvidia added 1.97 percent after reports that mass production of its next-generation Vera Rubin AI server platform had begun, fueling expectations for another round of AI infrastructure investment. Investor sentiment was also buoyed by UBS's view that the recent correction in AI chip stocks reflected hedge-fund position unwinding rather than deteriorating fundamentals.
The recovery in risk appetite extended beyond semiconductors. The MSCI Korea ETF rose 6.16 percent overnight, while the MSCI Emerging Markets ETF gained 2.80 percent.
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